Moonstones are considered sacred stones in India. They are always displayed on a yellow cloth, which is a sacred color. According to Vedic legend, a battle was fought between Lord Vishnu and Bali, the demon god. Vishnu destroyed Bali by breaking his body into several pieces, which fell to the earth as different jewels. It is said that the 'Chandrakanta' or moonstone was formed from the gleam of Bali's eyes. It was believed that the finest blue moonstones were washed ashore by the tides every 21 years, when the sun and moon were in an astrologically harmonious aspect to each other.
The moonstone is associated with the astrological sign of Cancer and is an alternate birthstone for June. Some of the metaphysical properties that have been ascribed to the moonstone include its supposed ability to help stabilize the emotions and bring a sense of calm to the wearer of the stone. It is said to enhance intuition and spiritual development. An elixir was traditionally made of crushed moonstone to help cure insomnia, and the stone was also used to treat sleepwalking.
Courtesy of houseofgems.com, ehow.com, thehindu.com, dinamalar.com