Yeah, the game balance is a little strange, in my opinion.
The first two chapters, you don't really get much in the way of magic or gold.. your party stays relatively poor, but you get just enough money to keep yourself equipped and resurrect a char or two should they fall.
Starting in chapter 3, though, the game begins to become more "Monty Hall-ish" as another poster put it, and the magic stuff just starts to roll in. By the time you're in the final chapter, you'll find some really kick-ass magical artifact, and toss it over your shoulder because it would just eat space in your inventory.
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