Diamonds are unstable compared to coal (or more exactly, graphite) so high temperature and pressure are required for diamonds to form from graphite. The reason that coal (graphite) is black and diamonds are clear has to do with how the carbon atoms are connected together in the two different forms of carbon. In diamond each carbon atom is bonded to its neighbors like the points of a pyramid. In graphite (coal) the atoms are connected to one another is flat planes. The flat planes can absorb light of all wavelengths (colors) while the pyramids found in diamonds cannot absorb any visible light and as a result are transparent. The reason for the difference is that the electrons in the large flat sheets of graphite can all "giggle""jiggle" at many frequencies, but the tightly bound and constrained electrons in diamond are not free to "giggle""jiggle" and thus cannot absorb light. Heat and pressure change coal into diamond, but it is the change in crystal structure that results in the color change. Graphite is composed of flat sheets of carbon similar to shale and basically keeps going in all direction until the end of the sheet. Diamond is a 7-carbon crystal, which is 3-dimentional and therefore gives the crystal light refracting properites. Color is a result of light absorbtion or light reflextion. Black means that all possible colors are being absorbed and white means that all colors are reflected. In the case of diamond, it is clear because light passes through it.