I know this isn't a direct answer to your question, but if you'll bear with me I think this will be very helpful for you. There are three main things which impact the effectiveness of armor against physical blows. They are the armor grade, the armor class, and the magical protection enchantments.
The armor grade is either cloth, light, or heavy, and the armor grade decreases physical blows to the covered area by a static amount. Heavy armor carries reasonable innate damage reduction on the area of the body it protects, cloth carries a very light damage reduction.
The armor class is a value for every piece of armor that makes people more likely to "miss" you. In general, heavier armors have a higher armor class, but this isn't guaranteed to hold true for all armor: Low-quality mithril has a lower armor class than scale, and some energy armor, although cloth-grade, has a higher armor class than some adamantite. The armor class cannot be directly determined, but when you use the "compare" command for armor, you can determine the relative armor class compared to something else of the same armor slot.
For enchantments, there are five total defensive types of enchantments: Magical protection, magical resistance, fortitude, willpower and reflex. The only one of these that impacts the physical protectiveness of a piece of armor is magical protection. If a piece of worn armor has magical protection on it, whatever area of the body it guards take less damage from all physical strikes to it.
Now, the level of an item is not directly correlated to any of these things. Although higher level armor is more likely to have a higher armor class and better starting enchantments, that isn't a guaranteed thing. In fact, most cloth armor is always a low armor class, and is also cloth grade, so the most important thing you can ever get on cloth armor isn't high level armor: It's good enchantments. To be honest, as a cloth armor wearer, you really shouldn't even bother buying cloth armor for protective purposes.
Let's take, for example, a cloth vest from the Taslamaran newbie area, and a cloth tuxedo bought from the fancy tailor shop in Taslamar. The cloth vest costs maybe 1 gold, while the tuxedo, being a tuxedo, costs 3 platinum.
The vest and tuxedo are both cloth, so they're both the same armor grade. I compare the vest and tuxedo with the compare command, and realize that the vest and tuxedo both protect my chest the same. Therefore, they have the same armor class. I identify the tuxedo, and I realize that it contains enchantments for magical energy. Since this isn't magical protection, I realize that even though the tuxedo is higher level and is also more expensive and likely to be stolen, it isn't in any way, shape or form more protective.
My main point is that as a cloth wearer, you honestly -should- wear armor from the newbie areas. Cloth is cloth, and until you start fighting NPCs that are putting you in danger via magical spells, the only thing that should matter to you is physical protectiveness for dagger throwing and/or physical blows as you're training: And in fact, if you're playing a class with the magical vestments spell, that spell is much more valuable as you level up than having higher level armor. Holding it should reduce physical damage you take by a pretty decent amount. It also lasts a very long time after it's cast. Since casters come by coin much slower in general than other characters, you should probably work on just saving up coin for training the new skills and spells that will open the world up to you once you can learn them. As another example, a lot of my priests actually end up enchanting the mess out of the Taslamaran newbie area cloth when they get started, and then wear that gear even as a grandmaster.
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