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I dont know if its just me being dumb but for the horse quest where he asks for a spectrum gem I can seem to find one at all

That was sort of an error on my part. If you fight the hydra you can get one, although I accidentally set the drop rate to 1% instead of 100%. Once I put out the next patch, you should be able to refresh the page and click on the "fix enemy stats" link in "Game fixes" to update the hydras stats. 

But also you can get one from identifying gems, although it's a pretty low percent chance.