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It is not 100 -50 -50 but 100*0.5*05. And it never ever drops below 1 gem in all paths involved.
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Johann, I love you and want to have your babies, but this is incorrect. I have posted before detailing how you can forge for free. (Unfortunately, the current forum searching function has caused me to give up after about 15 minutes of careful rephrasing.)
You can forge items for 0 gems under certain circumstances, and you dont even need a Smith for it. (Steel Ovens or similar, FotA, Hammer will do.)
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I love you to thinktank, but in a butch and entirely platonic way. Ok, on the forging. Now that you mention it I have a vague recollection of the thread you refer to as well.