Updated for Game Version 1.69.0, except for Enchanting
In order to make you gear stronger, it need to be taken to the Blacksmith and upgraded into a stronger item. The Blacksmith requires gold, Orn, materials, and time. Each time you take the gear to the Blacksmith it will get stronger. When the gear is ready you will get an in-game message that it is ready to pick up. Visit any blacksmith to pick up your gear again. Here is a chart of the time table for upgrading.
Masterforging & Demonforging
To masterforge an item, you need to find an Alchemist shop. “Masterforging” is similar to upgrading an item to level 11. Doing so requires the item be level 10, as well as 1 million to 100’s of millions in gold and (item’s quality %)*3 for materials. So a perfect 200% Ornate item will require 600 materials. Masterforing is instant and will replace the “Ornate” quality in the item’s name with “Masterforged”. It will also increase the item’s quality by +1%. A 200% Ornate will become a 201% Masterforged item.
To demonforge an item, you need to find a Demonologist. “Demonforging” is similar to upgrading an item to level 12. Doing so requires the item be masterforged, and costs 10’s of millions to over 1 billion gold in a very wide range, and (item’s quality %)*6.66 for materials. So a perfect 200% Ornate item will require 1,332 materials. Demonforging is instant, and will replace the “Masterforged” quality in the item’s name with “Demonforged”. It will also increase the item’s quality by +1%.
Use the following link to figure out what your item’s stats will be at each level.