Recipe for this is as follows:
Smithing (69) Clothcraft (??)
Crystal: Earth
Damascus Ingot x1
Darksteel Chain x3
Darksteel Sheet x2
Silk Cloth x1
Velvet Cloth x1
Being a blacksmith, I'm familiar with the prices of some of the above items.
Darksteel ingots go for about 19 - 25k depending on availability, history, and city. A darksteel chain is two darksteel ingots compressed together (i.e. synthed with an earth crystal). So that's 8 darksteel ingots, 2 fire crystals, and 4 earth needed just on the blacksmithing end. Silk and velvet cloths go for 10 - 12k apiece if I remember correctly.
Current total = 225k.
Next onto the Damascus Ingot. I just read that it's a rare drop from a high level HNM, such as Kirin. Rumor has it that it's synthable, but only a very few know the recipe and they are not sharing. So the Damascus Ingot is staying around the 1mil mark on the AH. So crafting it costs around a nice 2 mil or so. Also add in the effort needed to take blacksmithing to level 69. It's not easy on one's pockets or patientce. So, please folks, don't delude yourselves into thinking that blacksmiths will forego any sort of profit in this.
But hey, it's my current goal in blacksmithing. So trust me, when I finally make one, I'll synth it, sign it, and be shouting about it in Jeuno.
Edit: Damascus Ingot price update.
Edited, Wed Feb 9 17:42:15 2005 by szandorr