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Trader Katerina deals jewels as a subsidiary business. She asks you to head to the Elven Ruins to get soul ore shards, which were used by the ancient Elven mages. As you have been told, you shall find Salamanders and Undines in the Elven Ruins, and you may earn the 'flame shard' and the 'ice shard' from them.

1. Talk to Trader Katrine in the magic shop and the north end of Talking Island Village.
2. Goto the Elven Ruins (Talking Island Dungeon) and hunt Undine (lvl 17 aggresive) and Salamanders (lvl 17 passive) to collect and Ice Shards and Flame Shards respectively.
3. Return to Trader Katrine and turn in the shards for 60 adena each.

You can continue to do this quest indefinitely and return with any number of shards at any time.