So far (I just started Act 2), grey items sell for almost nothing: usually 3-6 gold pieces.
Magic items can sell for considerably more at this level. 150 gold may not seem like a lot in the big scheme of things, but it is much better than 3-6 gold!
However, I've been salvaging everything magical instead of selling it. Is this a mistake? So far I've level my blacksmith to the point where most of what he makes is powerful enough that I have to gain several levels before I can even use it. I also have a lot of subtle essences and a decent supply of of fallen teeth.
Am I better off selling some of my magic items, instead of salvaging everything? Is there a specific vendor-price I should use as a guideline (i.e. "everything that sells for more than x gold should be vendored")?