The difference between Gem and Precious stone
When used as nouns, gem means a precious stone, usually of substantial monetary value or prized for its beauty or shine, whereas precious stone means any gem, such as a diamond or ruby, that is expensive because of its rarity or desirability.
Gem is also verb with the meaning: to adorn with, or as if with, gems.
check bellow for the other definitions of Gem and Precious stone
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Gem as a noun:
A precious stone, usually of substantial monetary value or prized for its beauty or shine.
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Gem as a noun (figuratively):
Any precious or highly valued thing or person.
Examples:
"She's an absolute gem."
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Gem as a noun:
Anything of small size, or expressed within brief limits, which is regarded as a gem on account of its beauty or value, such as a small picture, a verse of poetry, or an epigram.
Examples:
"a gem of wit"
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Gem as a noun (obsolete):
A gemma or leaf-bud.
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Gem as a noun:
A type of geometrid moth, Orthonama obstipata.
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Gem as a noun (computing):
A package containing programs or libraries for the Ruby programming language.
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Gem as a noun (uncountable, printing, uncommon, obsolete):
A size of type between brilliant (4-point) and diamond (4½-point), running 222 lines to the foot.
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Gem as a verb (transitive):
To adorn with, or as if with, gems.
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Precious stone as a noun:
Any gem, such as a diamond or ruby, that is expensive because of its rarity or desirability; especially one set into a piece of jewelry.