Salvage Bag

The Salvage Bag was added during Publish 48 on November 27, 2007. It is a comprehensive recycling system that will help players turn finished products back into raw materials such as Ingots, Cloth and Leather. The bag can be purchased from a provisioner for 1,225 gold.

Using

Place a Salvage bag in your backpack and fill it with all the items you wish to recycle. Once full, open a Contextual Menu on the bag itself and select the appropriate option (Ingots, Cloth, or All). The items will be turned back into raw materials with a system message informing you how many items were recycled.

Notes

The "Salvage Cloth" option recycles leather as well
You must have the appropriate tool in the main level of your backpack to recycle (scissors for cloth/leather, tongs, smith's hammer or sledgehammer for ingots)
Mining skill determines how many ingots you will be able to recycle, with an additional Bonus of 1 ingot per metal item recycled.
Currently, only items that fall under the Blacksmithy skill can be recycled into ingots.
Tailoring skill determines how much cloth and/or leathers you will be able to recycle; however, the Salvage Bag provides no additional bonus like that for metal items.
Bone armor cannot be recycled, and any unused cloth left in the bag accidentally will be turned into bandages. However, some "reversed" leather items that cannot currently be recycled by normal means, can be recycled by the Salvage Bag.
You must stand near a Forge and Anvil to recycle metal items
When salvaging tailored objects, remove all cloth from the bag before salvaging, or else the items will be salvaged into bandages, rather than cloth.