UTW
Midfield
Bought the GOTY from Steam when it was 20 quid a month or so back, couldn't resist at that price. Only gotten to the first little village where you need to speak to the strangers in the bar. Went further down the road and bumped into merchants that were selling a load of stuff, one being a lot of smithing/crafting supplies. Didn't have a clue what I was looking at or should be buying once I have gold. Does the game explain the smithing system in greater detail further down the game? There was just a brief description on who he was and what he sold when I got to him.
It's really basic it just seems complicated because of the amount of crafting supplies. You basically do "treasure hunt" quests which lead you to diagrams. The diagrams are for armor and swords.
Go to the pause menu, crafting and it should list all the diagrams you have. It tells you what supplies you need to create the item. You go to a blacksmith and they make it for you
Crafting supplies weigh nothing as well so collect everything you can