Background
The pearl of great price parable is found only in Matthew 13. It was given by Jesus between October 28 A.D. and Early 29 A.D. like the other seven stories found within the chapter.
Jesus' pearl parable is the sixth of eight recorded in Matthew 13. The first seven reveal characteristics of the kingdom of God while the eighth, known as the good householder (v. 52), focuses on those who understand and teach them to others.
The first four parables of this chapter were taught to a large crowd gathered on the shore of the Sea of Galilee (Matthew 13:1 - 2). The story of the costly pearl (Matthew verses 45 - 46) is part of a set Jesus taught privately to the disciples while they gathered in a Capernaum home (v. 36). The others in this group are the parables of the hidden treasure (44), the dragnet (47 - 50) and the good householder (52).
An Unusual Gemstone
Pearls are the second most referenced gemstone in the entire King James Bible! It is found, by name, in Job 28:18, Matthew 7:6, 13:45 - 46, 1Timothy 2:9 and Revelation 17:4, 18:12, 16 and 21:21 (10 mentions in 9 verses).
No mention shall be made of coral, or of pearls: for the price of wisdom is above rubies (Job 28:18, KJV).
Pearls are one of only two organically produced gemstones, the other being coral, recorded in the Bible. All other precious stones it mentions are created by geological processes. The preciousness of this natural gemstone is confirmed in Jesus' parable of pearls before swine.
Do not give that which is holy to the dogs, nor cast your pearls before the swine, lest they trample them under their feet, and turn around and tear you in pieces (Matthew 7:6).
How Did They Get Them?
Natural pearls, which are composed primarily of calcium carbonate, are created within the soft tissue of living shell-based mollusks. In the ancient world many oysters had to be gathered and opened to find one of these gems.
Divers usually sought pearls in the Red Sea, Persian Gulf and Indian Ocean. Some of these natural gemstones were possibly worth the equivalent of millions of dollars in today's money (Bible Background Commentary).
The Parable
"Again, the kingdom of heaven is compared to a merchant seeking beautiful pearls; Who, after finding one very precious pearl, went and sold everything that he had, and bought it." (Matthew 13:45 - 46).
In this parable a business man is actively looking to purchase the finest pearls. This contrasts with the earlier story (Matthew 13:44) where a person accidently stumbles upon something of immense value. Both parables, however, are alike in that a person decides the worth of what they found justifies selling all they own to buy it.
Meaning
The meaning of the pearl of great price was understood by the disciples the moment they heard it. This contrasts with the parable of the tares which baffled them to the point of asking Jesus to explain it to them (Matthew 13:24 - 30, 36 - 43). The Bible confirms the disciples knew what this parable meant because the Lord asked them about it.
Jesus said to them, "Have you understood all these things?" They said to Him, "Yes, Lord." (Matthew 13:51).
Jesus gave the pearl of great price parable to stress the incalculable value of pursuing the kingdom of heaven. Eternal salvation is worth everything and deserves a person's total commitment.