Quote from budOther than that, i believe weapon dps does not reflect gems. I am sure that it does not on the AH, and i am pretty sure it does not in game either.
Weapon dps certainly does reflect what gem is in it. I had a sword that was 63 dps. I stuck a red (+8-16 damage) gem into it and the tooltip now shows it as a 70dps sword.
Could you guys tell me how exactly do red gems on weapon work? If I have a weapon that has damage x - y and I add a +14 - 28 red gem I would expect the damage to go up to x+14 - y+28. Instead I see the damage go up to x+14-Y+14.
Official blizzard forums has a topic on this in the bug reports forum.