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A freshwater pearl is formed in the same manner as a saltwater pearl, whether natural or cultured. The term freshwater refers to where the pearl is formed, not how. The distinction between saltwater and freshwater is not as important in assessing pearls' desirability and durability as whether the pearls is natural or cultured.
Native Americans of the Atlantic Coastal areas and the Mississippi River Basin were the first to collect and use American freshwater mussel pearls and shells. Pearl pendants and earrings were worn by both sexes, and both pearls and shell were used for decorative purposes on articles of clothing. Pearls were used as tributes in some tribes; reportedly Powhattan (Pocahontas' father) amassed large stores of pearls received in this fashion.
There are many varieties of the shellfish that yield these beautiful, coveted gems; some are indigenous to freshwater streams and lakes. Most are cultured in Japan and China. As with any cultured pearl, the shellfish deposits concentric layers of nacre around the foreign body that has been inserted. These irregular layers can be detected by rubbing the pearl gently across the teeth--"real" pearls feel slightly gritty.
Cultured freshwater pearls can be spherical in shape, or distinctly irregular (often called "baroque"). Color is generally much the same as the inside of the shellfish and varies from white to pinkish to greyish or brown.
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