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We really don't know how long Picori have been around for MC says they are beings of legend and it's the 2nd game so who knows. Rupees are definately magical, theres no gem cutters in Hyrule and Gorons seemingly eat gems along side rocks, the goron near the Goron Ruby's resting place was trying...

Makes sense, especially considering it was established in Minish Cap the Picori were responsible for any and all drops in the grass link was getting.