First and foremost this requires atleast 2 characters level 75+ that have jewelcrafting, enchanting, and alchemy. Another character with mining and herbalism isn't too bad either(but profitable still if you don't have a gatherer).
For alchemy go Transmute specialization so you can get extra gems that you'll be xmuting.
If you buy ore, buy stacks of obsidium, elementium and pyrite at their lowest possible to maximise profit(which will be high regardless).
If you farm ore i suggest using a bot of some sort once or twice a week to prevent getting caught, unless you enjoy manual farming.
Ores are prospected and you're left with rare and uncommon gems. The rare gems are cut and sold at the AH. Jasper, Nightstone, Carnelian, Alicite and Hessonite are made into Jewelry: Jasper Rings, Nightstone Chokers, Carnelian Spikes, Alicite Pendants and Hessonite Bands. 10% of the time, you will get rare quality Jewelry that can be sold at the AH. Rare Hessonite Bands can be disenchanted into Heavenly Shards. Zephyrite is vendored or sold when the Jewelcrafting daily requires it. The remaining Jewelry is disenchanted into Celestial Essence and Hypnotic Dust. From here, you can either sell everything, or keep branching off into enchanting scrolls and Embersilk Bags (to get rid of all that excess Hypnotic Dust).
Red gems will most likely(99.9% of the time) will cover the buying ore costs and everything after that is pure profit. Green gems that don't sell well on the Ah are used to transmute into blue gems or bulk transmuted into meta's and then cut into the best selling type at the time. This is ore shuffling in a nutshell and i will be working on a more indepth guide later.
Primary source: http://stormspire.net/addons-ui-cust...et-v4-5-a.html
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