Crafting is a term that refers to a character creating items that are related to the skills possessed, the level of those skills, the ingredients employed, and the tools used to create them. Some of the items created by crafting are your run of the mill items, such as: tools, furniture, clothing, etc. However, there is a chance that some of the items that are crafted by the most skilled tradesmen and women will be unrivaled.
Lumberjacks, anglers, and miners should keep an eye peeled for new, rare gems. These gems allow for the creation of new magical items that have a guaranteed low percentage in a certain item property, such as Swing Speed Increase, Damage Increase, Hit Chance Increase, etc.
In addition to the resources needed to create magic items, be they special wood or rare gems, a Runic Kit of your profession must be used to create such items.