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Gems are mined as uncut gems. When crafted into cut gems with a jeweler bench, they can be used to encrust tools, adding enhanced effects.
 Uncut Gems
As of Version 1.2, once gems are mined, they no longer give cut gems. Instead, they give uncut gems and must be crafted into cut gems with a jeweler bench.
Diamond is the only Uncut Gem with a second purpose, as it is used to craft the jeweler bench.
 Cut Gems
They can be crafted into gem blocks or used to encrust tools.
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