Chipped Teardrop Diamond

Socket bonuses

In a Weapon: +15.0% Physical Damage
In a Helm, Chest Armor or Pants: +1.5% Cooldown Reduction
In a Ring or Necklace: +5.5% Physical Damage Reduction

Gem

Gem type

Diamond

Tier

Tier 2

Enemy level

35 to 39

Sells for

1,000 gold

Enemies of level 35 to 39
Every cleared encounter has a gem chance (1% for normal enemies, 6% for elites, 10% for mini-bosses and 12% for bosses); at these levels the gem is one of the 6 tier 2 gems, picked evenly.
Treasure chests
Chance of a gem, picked the same way at the chest's level: 10% in the Silver Treasure Chest and Mythic Treasure Chest; 20% in the Golden Treasure Chest.
Raw Sphere Diamond
The Gem Specialists make 1 Chipped Teardrop Diamond from 10 Raw Sphere Diamond and 300 gold.

Dreamwood Treasure Drake
70% per cleared encounter with it, on all difficulties. Met in Dreamy Kings Woods (level 30 on Normal).

Enemy special drops are rolled once for every cleared encounter the enemy is part of, however many of it the encounter holds, in the places listed here. On Nightmare and Inferno every enemy in them is level 70.

Drop chances are the game's rules for offline characters; the game server decides the loot of online characters.