The name hematite derives from Greek haematitus, which means “Blood stone” or more precisely “stone that bleeds”. This should not be confused with the modern bloodstone, which is unrelated in both composition and folkloric properties to the modern hematite.
Hematite is a variety of iron ore, and this may account for its limited folkloric history. This stone would have had greater value for the iron it possessed rather than its physical appearance. Unlike copper bearing malachite the hematite is rather drab till polished or ground, and then resembles the same metallic sheen that can be seen in many ferrous alloys. It is also very likely that the majority of hematite was processes into iron for tools or weapons. This would result in a situation where you had a low value gemstone that could be converted into something much more profitable, with a desirable byproduct.
Hematite has an association with blood because of the red ocher created when the stone is ground or cut. The majority of the historical folklore about the hematite are pseudomedical in nature and involved powdering the stone and administering in in various concoctions as a cure for everything from blindness to drunkenness and STDs. Though this may sound unusual now the use of powdered gemstones as medicine was common prior to the 1800s.
Most of the folkloric properties of the stone were due to the images engraved upon its surface during the creation of an amulet or talisman, rather than an inherent virtue of the stone itself. A few of the lapidaries talk about carving mythological figures or other sigils into the hematite and then setting the stone into specific metals to create amulets for a host of different maladies.
The association of hematite with iron thus the god Ares / Mars would account for the references of hematite bestowing courage and protection on a soldier when powdered and applied to the body before a battle. The powder from processing hematite is visually and chemically similar to red ochre. This type of pigment is usually created from iron bearing clays, and are some of the earliest pigments known to mankind.
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