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I am using the Appendix in Ultimate Equipment to generate a Treasure Hoard.

A 1000 GP (Type H Treasure, Lair Treasure) contains "three grade 1 gemstones", but the gemstone tables aren't referenced like that they're by "Least Semi-Precious Gem" or "Greater Semi-Precious Gem" etc..

How does the grading on the treasure tables relate to the random gem tables?

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Looking at the table Type B Treasure, Coins and Gems, you can see that gemstones are given in 6 grades, ranking from 1 (least valuable) to 6 (most valuable).

As you have pointed out, the table Random Gems has more distinct description. There are 6 categories ranging from least semi-precious gem to greater precious gem, with increasing gem value.

Because of the mentioned similarities, a direct association between the 6 grades and the 6 categories is the (only) logical choice.

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