Item Color

What does the color of the item designate?

I recently received a purple bow that was only 1 or 2 dmg higher than my current bow, but it did not have any of the buffs my current blue bow has.

The colors represent their degree of rareness. Usually the purple or gold items have less skill requirements and better attributes.

Sometimes purple and gold stuff you get, has no extra attributes, but observe the requirements to wield it, some of them can be quite low such as 6 or 7 points for a max dmg weapon.

blue is magic
Purple is more magic
Yellow is Rare.