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A few gemstones are used as gems in the crystal or other form in which they are found. Most however, are cut and polished for usage as jewelry. The picture to the left is of a rural, commercial cutting operation in Thailand. This small factory cuts thousands of carats of sapphire annually. The two main classifications are stones cut as smooth, dome shaped stones called cabochons, and stones which are cut with a faceting machine by polishing small flat windows called facets at regular intervals at exact angles.

Stones which are opaque such as opal, turquoise, variscite, etc. are commonly cut as cabochons. These gems are designed to show the stone's color or surface properties as in opal and star sapphires. Grinding wheels and polishing agents are used to grind, shape and polish the smooth dome shape of the stones.[13] Gems which are transparent are normally faceted, a method which shows the optical properties of the stone’s interior to its best advantage by maximizing reflected light which is perceived by the viewer as sparkle. There are many commonly used shapes for faceted stones. The facets must be cut at the proper angles, which varies depending on the optical properties of the gem. If the angles are too steep or too shallow, the light will pass through and not be reflected back toward the viewer. The faceting machine is used to hold the stone onto a flat lap for cutting and polishing the flat facets.[14] Rarely, some cutters use special curved laps to cut and polish curved facets.