While the vast majority of diamonds fall in the D-to-Z colour range, nature occasionally produces diamonds with a naturally occurring blue, brown, pink, deep yellow or even green hue. The geological conditions required to yield these colours are rare, making diamonds with distinct and naturally occurring shades scarce and highly prized.

Unlike colourless and near-colourless diamonds, fancy-colour diamonds are evaluated less for brilliance or fire and more for colour intensity. Shades that are deep and distinct are rated higher than weak or pale shades.

GIA describes colour in terms of hue,tone andsaturation. Hue refers to the diamond's characteristic colour, tone refers to the colour's relative lightness or darkness and saturation refers the colour's depth or strength. Using highly controlled viewing conditions and colour comparators, a fancy colour grader selects one of 27 hues, then describes tone and saturation with terms such as "Fancy Light," "Fancy Intense," and "Fancy Vivid." The colour system GIA developed is used worldwide.

GIA offers two types of grading report for coloured diamonds. The GIA Coloured Diamond Grading Report contains the same comprehensive diamond 4Cs information as the GIA Diamond Grading Report, while the known as the colour-only report) is limited to colour grade and the origin of the colour (natural or treated).

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