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To all practical intents and purposes, if you want more gems, search your territory thoroughly (more paths searched at 1-2 > fewer paths searched at 3-4), cast gemgen globals like Well of Misery, and accept that this is your lot.
Dominions is far more wargame than 4x, it's not terribly interested in ways to build tall by sitting in your forts growing your economy. If you want more stuff, get out there and take it off somebody else's corpse.
I do tend to think of it as a 4x :) (good point)
so basically i just need to get out there
Some Nations such as Oceania can convert miscellaneous gems into far more useful (for them) Astral Pearls.
There are forgable Magic Items (such as the Fire in a Jar) which create *temporary* gems that can be used in Combat, but not in Rituals. There are also more powerful and rare Magic Items (e.g., Fever Fetish) that can create permanent gems at the cost of hurting or killing your commanders.
2) Oceania cannot convert gems. You are thinking of Pelagia's ability to convert water gems (and only water gems) into pearls.
It was early and I hadn't had my coffee yet. ;)