Grand lost initially in outlay I put on diamonds (8)

I believe the answer is:

splendid

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'grand' is the definition.
(thesaurus)

'lost initially in outlay i put on diamonds' is the wordplay.
'initially' indicates taking the first letters.
'in' is an insertion indicator.
'outlay' becomes 'spend' (I've seen this before).
'put on diamonds' becomes 'd' (I am not sure about this - if you are sure you should believe this answer much more).
The first letter of 'lost' is 'l'.
'l' put inside 'spend' is 'splend'.
'splend'+'i'+'d'='SPLENDID'

Can you help me to learn more?

(Other definitions for splendid that I've seen before include "Wonderful" , "Noble" , "Superb" , "Great" , "Very fine, quite glorioous" .)

I've seen this clue in The Telegraph.

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