Sell the gems. They're like condensed gold. Occasionally you will find a "special" gem which has a name assigned to it. It will be needed to complete a guild quest and go up in levels at the guild so that you can learn new traits and skills. These gems are very uncommon. I can't be 100% positive, but you may be prevented from selling some quest items. I tried to sell some quest items after I had completed the quest but they weren't in the list of items to select. So I'm hauling them around everywhere.
Gems that can be sold safely are: emerald, amethyst, ruby, diamond
Try to learn Ancient Lore and then build up the Artifacts skill so that you can identfy items yourself. This will save you a lot of money. The armory will rob you blind to identify items. If you identify an item you can sell it for twice as much. You can still equip items you haven't ID'd and get all the benefits. You just won't be sure what they are so watch out for "cursed" items which subtract from your abilities!
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