Hematite derives from Greek "haem" meaning blood and "tite" meaning stone. This stone is a variety of iron oar and contrary to most modern texts, this stone is not the bloodstone the philosophers like Albertus Magnus spoke of. This misconception can be directly attributed to a popular new age book by Scott Cunningham, who apparently neglected to read the descriptions of the stone in the older works in question, prior to making such a claim. And though it is possible that Dr. Dees famous "black stone" mirror was in fact hematite, scrying was not one of hematite's principal properties.
               Hematite is was renowned as a stone of protection, both from physical attack and socercry. This is probably due to its high iron content, which in folklore has always been a foe of evil spirits and enchantments. This stones ability to take a mirror like polish was probably not lost on our ancestors who prized such things, and who would have linked it, like most reflective objects, to the ability to send sorcery back on its caster. Because of this, the property of divination becomes associated with the stone as a secondary trait, as with all mirrors.
Hematite also has an association with blood because of the red ocher created when the stone is ground or cut. As such it is said to help with issues of the blood, but not nearly to the extent that the bloodstone does. As a final note there are references by Pliny that hematite assisted in legal matters as well.

Metallic silver                     
Many parts of North and South America, Europe and Asia.
FE2O3, with impurities, Iron oxide in silicon dioxide.
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