I had long used Golden Acrylic’s Micaceous Iron Oxide, part of their Iridescent colors, straight out of the tub or in glazes, shown above. It is this delicious heavy shimmering charcoal in a pot. In Horse with Red Ball, above, the dark grey is straight Micaceous Iron Oxide, The ridges of grey are a glaze, and the brown of the horse has it mixed into it.
Hematite is a form of iron oxide, a mineral that contributes to several different paint colors. It has an undertone of reddish brown, which when placed in a glaze gives it a shimmering red cast. In its natural form is is quite heavy, and is called the Shaman Stone by Native Americans. It is believed to have the power to attract, as in a magnet. The Greek word for blood, as in blood red, gives us its name αἷμα (haima.)
Daniel Smith’s Hematite was a color I looked for when I began trying watercolors, and I immediately mixed them with all my other new colors, below, to see the effects. The hematite is highly granulating, which you now understand; you can see how it separates the colors below.
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Michigan Hematite courtesy Wikipedia.