Drakensang offers players the option to upgrade their gear (Armor, Weapons, Jewelry). You can upgrade any items from Uncommon rarity to Legendary.
Upgrading costs a special currency called: Glyphs of power (GOP is how most people call them ingame) which you get from melting an item which isnt common at the blacksmith.
When upgrading an item the enchantments it has + the basic stats of it get an higher value for example: Boots with 57 base armor and +32 Health enchantment will get 60 base armor and +35 Health enchantment after upgrading. Upgrading an item levels the item's level up with values you would get from any item at the same level as the upgraded item. (Be warned some enchantments can't be upgraded and in the upgrading window it will show it to you).
To upgrade an item you have 2 options:
Option 1 - To go to the blacksmith and choose the upgrade option.
Option 2 - Left click the level icon of your item.