ANSWER: Reference to the balm of Gilead occurs in only three places in the Old Testament. These references are in Genesis 37:25, Jeremiah 8:22 and 46:11.
And they sat down to eat bread: and they lifted up their eyes and looked, and, behold, a company of Ishmeelites came from Gilead with their camels bearing spicery and balm and myrrh, going to carry it down to Egypt (Genesis 37:25, KJV translation throughout unless stated)
Is there no balm in Gilead; is there no physician there? why then is not the health of the daughter of my people recovered? (Jeremiah 8:22)
Go up into Gilead, and take balm, O virgin, the daughter of Egypt: in vain shalt thou use many medicines; for thou shalt not be cured (46:11)
The Hebrew word for balm is tsoriy (Strong's Concordance #H6875) and comes from an unused root word meaning to leak or crack. A generic definition is that it is an aromatic salve or ointment derived from a plant (or a tree) that may (though not always) be used for its believed medicinal properties. An example of a non-medicinal use of a fragrant ointment is when some was made in order to embalm Jesus' dead body and mask the smell of decaying flesh (Luke 23:56).
The compound you are asking about is believed by some to have been first brought from this region of Israel by Ishmaelite traders traveling in a caravan to Egypt (Genesis 37:25). It was to these merchants that Israel’s sons sold their brother Joseph in the hope that they would no longer have to deal with him.
The region of Gilead was noted for this ointment, a secretion of the balsam tree. The territory where this salve came from (an area north of the Salt Sea in the land of Israel) was originally given by God to Manasseh as an inheritance when the children of Israel entered the Promised Land. It was used in various healing mixtures and sold to various countries like Egypt.
It is possible that this ancient trade item is now known as the Balsam of Mecca. This resinous balsam product originated from trees that grew in Palestine and in the southern part of the Arabian Peninsula. The most known location that produced this type of ointment was the city of Ein Gedi (located on the western shore of the Dead or Salt Sea).
This product was used both for medicinal purposes and for a perfume by ancient Greek Roman cultures. Pliny the Elder (lived from 23 to 79 A.D.), a Roman army commander and author, mentions the balsam as an ingredient in the Parthian Empire's "Royal Perfume."
There is really no "big picture" in the Scriptural reference to the balm of Gilead. People generally have their own references when it comes to healing and healing prayer. This ointment is one of them.