This skill destroys the selected item from your back pack and turns it into a low level raw crafting material. The Disenchant skill counts a production skill and will appear your skills menu along with your other skills like cooking, alchemy etc.
example: click the skill, then select a belt from your backpack. The belt will disappear and a random material like a link rune or unrefined wood will appear in the first available space in your backpack.
The skill does not give higher level materials for higher level items you select to disenchant.
example: disenchanting a "tier 7, purple, level 50, +12 refined axe" will probably also give you a link rune.
Some items will give you consistent result of three or four random crafting materials.
example: a belt could give you a random result of a blend rune, willow, or copper while chain armor may randomly give you a production rune, grass, or zinc.
The best use of the skill is for new characters to make small amounts of gold. Learn the skill and already have a few thousand gold to invest (i.e. 2-9k). Then return to a merchant NPC in a low-level starting zone (i.e. Pioneer's Village). Purchase several of the cheapest possible items (ex. a belt for 10 gold) and disenchant them. The materials you receive will often sell for more in the Auction House than what you paid to the NPC and you will be able to turn a small profit. Therefore, put your crafting materials into the Auction House at a competitive price and it should sell over time. Try several items to see which return the best profit. Rinse and repeat the process and you will be able to generate 10-100k gold fairly easily. This amount of gold is good for a starting character but as you advance in levels and gearing demands you will most likely find more lucrative options for gold-making.
It has been awhile since I've used the skill (Chapters 3-4) so as far as I know this is accurate and hasn't changed. Hope this helps.
