I know blue is your kinda standard magic items. Just a step above the fodder stuff. Purple...I just got a very nice purple text staff tonight. Has like 4 or 5 things on it. Unlike most blue ones which have 1-2 stat plusses.
So purple I guess is sorta rare magical. Not sure about yellow.
I guess they each have some complex ingredients to each. Purple and Yellow are definitely better finds/drops (more rare than blue) whereas blue is just a smidge above regular drops when it comes to their magical properties.
Purple and Yellow *unlock* better items for your toon to use and also for your PvP character to use when going to battle.
White: Normal
Blue: Uncommon
Purple: Rare
Yellow: Ultra-Rare
Items are all random, but usually it goes in that order for quality of the properties as well. (Although my first Purple Drop was utter crap. I've had better blues. )
Okay let us make this even clearer, when looking at an item’s text if the color is: White is common, Blue is an item that is unidentified or has been identified and has magical attributes attached to it. Purple is an item that is highly salvageable meaning it will give you a rune/weapon upgrade component. Yellow is a rare item.
I've heard several different people claim to have seen a red item. I haven't myself, but I believe them at this point.
Gold items aren't that great, I have a gold Truncheon, the damage is like 1 point better than other ones it's level, and it's only mod is 11% chance to increase cast speed, which seems to double cast speed when it goes off.
BTW...I got that from a chest after we killed the Frost Drake or whatever it was in the cooperative mission in that one south of Yaks or maybe it was the one after that...I cant remember.