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Jewels are not present in Diablo III... at least not yet. The Diablo III developers have never commented on jewels, other than to say they will not be in Diablo 3, upon initial launch.

Jewels are found in Diablo 2, where they were an item type added in the Lord of Destruction expansion. In that game, Jewels offered a variety of magical affixes, once socketed into an item. The key difference between jewels and gems is that jewels had many different possible modifiers, and granted the same bonus no matter what type of item they were socketed into.

Though Blizzard has not even hinted at the possibility, many fans expect jewels to return as a socketable item in the Diablo III expansion.