Because a colorless diamond, like a clear window, allows more light to pass through it than a colored diamond, colorless diamonds emit more sparkle and fire. The formation process of a diamond ensures that only a few, rare diamonds are truly colorless. Thus the whiter a diamond's color, the greater its value.
[NOTE: Fancy color diamonds do not follow this rule. These diamonds, which are very rare and very expensive, can be any color from blue to green to bright yellow. They are actually more valuable for their color.]
To grade 'whiteness' or colorlessness, most jewelers refer to GIA's professional color scale that begins with the highest rating of D for colorless, and travels down the alphabet to grade stones with traces of very faint or light yellowish or brownish color. The color scale continues all the way to Z.
Source: thediamondbuyingguide.com
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