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Mood Rings contain thermotropic liquid crystals inside the stone or the band of the mood ring. These liquid crystals are able to show different colors at different temperatures. The liquid crystals in modern mood jewelry are usually made from a flat strip of liquid crystals with a protective coating.
Some people describe the feeling as clammy, but your mood ring picks up this change in your body temperature, and the liquid crystals rearrange themselves in ways that reflect the lighter colors in their spectrum, which produces shades ranging from amber to green.