I was doing Arborstone with a PuG this afternoon, and to the surprise of me (and my teammates) a Stone Rain dropped a Sapphire!
Sapphire Drop in Arborstone Mission!
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not to flame this post but wiki for the rescue:
Sapphires and Rubies are probably the rarest crafting materials in the game. They are even harder to find then Ectoplasm. They are usually found in the Underworld or Fissure of Woe, but there have been reports of them found in other areas of the game too, such as Sorrow's Furnace and from the imps in and around the Sanctum Cay mission. There has also been a sighting of them being dropped by Rock Fist, in Ascalon.
i got one outside LA from a fire imp.
basicly...random drop.
Sapphires and Rubies are probably the rarest crafting materials in the game. They are even harder to find then Ectoplasm. They are usually found in the Underworld or Fissure of Woe, but there have been reports of them found in other areas of the game too, such as Sorrow's Furnace and from the imps in and around the Sanctum Cay mission. There has also been a sighting of them being dropped by Rock Fist, in Ascalon.
i got one outside LA from a fire imp.
basicly...random drop.

luckily i selled them to merchant before the prices went down to 250 gold, whooh!
To bad there only like 4k now...