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With luck and skill, you’ll survive more than a few battles, and find yourself looking to replace your worn-down or outdated equipment. This is wise.
You can buy new items from merchants. You can find new items in treasure chests, or clutched by decaying skeletons (both moving and unmoving).
But, with the help of some talented allies, you can also create new items, and upgrade existing ones.
Most commonly, you’ll acquire crafting materials by salvaging items that you don’t need. When you acquire a low-quality magic item that isn’t an improvement over your current gear, you can sell it to a merchant for gold, or you can salvage it by speaking to the Blacksmith. Only magic items can be salvaged; lower-quality normal items aren’t powerful enough to yield crafting materials.
You can also improve your artisans by giving them gold to buy new equipment and further train their skills. With enough practice, they’ll gain a level and unlock the knowledge required to craft even better items.
You’ll find unique recipes in your travels: formulae and plans that you can share with your artisans. Some of the most valuable and precious items in the game must be forged or designed from plans found this way.