Crossword Genius

Its price increases after it has been cut (3)

Ross

I believe the answer is:

gem

I'm a little stuck... Click here to teach me more about this clue!

'cut' is the definition.
The definition and answer can be both man-made objects as well as being singular nouns.
Maybe there's an association between them I don't understand?

'its price increases after it has been' is the wordplay.
I cannot quite see how this works, but
'it' could be 'e' ('e' can mean 'electronic' which is similar to 'IT') and 'e' is located in the answer.
The remaining letters 'gm' is a valid word which might be clued in a way I don't understand.
This may be the basis of the clue (or it may be nonsense).

Can you help me to learn more?

(Other definitions for gem that I've seen before include "one of the Cairngorms?" , "36 Across or any other jewel" , "Valuable stone" , "Precious or semi-precious stone" , "A jewel or precious stone" .)

I've seen this clue in The Globe and Mail.
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