Hematite occurs in various geologic settings including igneous, metamorphic, and sedimentary rocks as well as in soils. However, it frequently occurs at low concentrations, especially in soils, where it may be Work described in this paper may be applied in several situations. Our study of visual limits of hematite detection should aid field geologists in assessing hematite content. Analysis of color wavelength bands may also have application in remote sensing by indicating which bands are most sensitive to hematite, reported to be an important constituent of the martian surface. Furthermore, this study could help clarify remotely sensed terrestrial albedo changes, especially the Sahara/Sahel transition where the sediments change from light, quartz-dominated to dark, hematite-dominated. Our study also points out that with laboratory-based spectra the first derivative of the reflectance curve is the most sensitive transform for processing spectral data for hematite, thereby allowing concentrations as low as 0.01% to be detected.