The "cut" of a diamond is a slight misnomer considering the fact that a master jewel smith spends hours grinding each and every facet to maximize the sparkle of the stone. It is the cut that determines how light enters, bounces around, and finally exits the stone. It also will impact the final shape of the diamond as well. As much an art as it is a science, a jewel smith will examine the diamond in the rough extensively before ever touching it to the grinding wheel. They do this to pick the perfect shape, the final number of facets, and the overall size of the diamond all while trying to eliminate any major imperfections that may be present. When they do decide to start grinding the facets, they must be constantly aware of the angles they are cutting into the stone because even a slight deviation of a single degree could be enough to send light out the side or bottom of the diamond. As you can imagine, this would negatively impact the sparkle and brilliance of the final product. Some may consider the cut to be the most important aspect of a diamond, but it is important to remember that the three other Cs, color, clarity, and carat, work in conjunction with the cut and not independently of it.
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