Abstract: The supply and demand of the market affect the use value of gemstone. Only sustainable and stable supply of the gemstone resource can continuously promote the consumption and meet the demand of the consumers, thus promot the realization of the gemstone value. In this paper, peridot was taken as the main research object, through extensive literature analysis, the development and change of supply-demand relationship of ancient and modern peridot was reviewed.By analyze the supply-demand relationship trend of red spinel which has the similar historical position and development process of peridot, this paper analyzed the reasons why the peridot is undervalued and its future value improvement. The results showed that the historical instability in the supply of peridot was the main reason of the decline in its popularity, and the serious of underestimation of its value today. At present, the newly discovered Yiqisong Nanshan Peridot Mine in China can provide a consistent and stable supply to the global peridot market, and the four advantages of untreated peridot products meet the needs of the Chinese and even global consumers. It can be predicted that with the stable exploitation of Yiqisong Nanshan Peridot Mine in China, the global peridot market will be continuously and stably supplied, and the peridot can gradually get rid of the current undervalued situation and return to its historical status. The research takes peridot as an example and provides a case of how gemstone supply impacts the demand and its value for the gemstone industry supply, demand and value of gemstone.