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I've read the CRB section on Wizard arcane bonds and also this faq, but I'm still confused about how this works in practice.
Say I've got a level 1 Wizard. He receives a non-magical item - say a mwk ring - for free that is his arcane bond.
Question 1: Later, he has enough gold and fame to afford a magical ring and decides to buy a ring of Ring of Climbing and use it as his arcane bond. Instead of paying the normal price of 2500 gp for the item, he instead pays 1250 gp. Yes?
Question 2: He must meet minimum level (and fame?) requirements to use the Ring of Climbing as his arcane bond, I think? What are they and how do you determine this?
Question 3: Later, he's got more gold and more fame and he's got his eye on a Ring of Wizardry I. Can he buy one for half price (10,000 gp instead of 20,000) and make it his arcane bond? What happens to his Ring of Climbing?
Question 4: Later still, he's got even more gold and fame, and wants to upgrade to a Ring of Wizardry II. Can the previous ring be upgrade? What does he pay to do so?
Many thanks for any clarifications any can give.

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The key starting point to understand how this works is that a wizard upgrading his bonded item is not “buying at half price,” he is using the Magical Item Creation rules. This is the one exception to the “No Crafting!” rule in PFS.
1. He doesn’t buy a new ring, he upgrades his existing masterwork bonded item. It costs him 1250 instead of the usual 2500.
2. In order to make his bonded ring into a ring of climbing, he must meet all the normal prerequisites if he was crafting the ring, except for having the Forge Ring item creation feat. (Though he must still meet the minimum level required to have the feat - 7th level in this case.) To clarify: he doesn’t get the feat, and can’t use it for anything other than his bonded item, but at 7th level a wizard with a bonded ring is treated as having Forge Ring when upgrading his bonded ring.
So for a ring of climbing you would need to be 7th level (Forge Ring), and have enough Fame to purchase a 2500 gp item (normal price of the ring). You still have to make a spellcraft check to craft the ring.
3. No. You can change your bonded item to another magical item with a ritual that costs 200 gp per wizard level. You would have to already possess the ring of wizardry I (bought at full price). If you do this
If a bonded object's owner dies, or the item is replaced, the object reverts to being an ordinary masterwork item of the appropriate type.
The ring of climbing would revert to being a masterwork ring with no magical properties.
4. Yes, you can upgrade it. You must have enough fame to be allowed to buy a 40,000 gp item (the normal price of a ring of wizardry II) and the cost to you would be 10,000 gp (the difference between the costs of a Type I and Type II ring). You must still make a spellcraft check using the crafting rules, including the increased DCs if you are not Caster Level 11 and/or cannot cast the limited wish spell.

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For any min-maxers reading this: yes I know there’s some cheesy stuff you can do in this particular set of examples to save some money. But it’s kinda convoluted so let’s make sure the Original Poster understands the overall rules for upgrading bonded items before we muddy the waters and get into optimization strategies.

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The key starting point to understand how this works is that a wizard upgrading his bonded item is essentially using the Magical Item Creation rules. This is the one exception to the “No Crafting!” rule in PFS.
1. He doesn’t buy a new ring, he upgrades his existing masterwork bonded item. It costs him 1250 instead of the usual 2500.
2. In order to make his bonded ring into a ring of climbing, he must meet all the normal prerequisites if he was crafting the ring, except for having the Forge Ring item creation feat. (Though he must still meet the minimum level required to have the feat - 7th level in this case.) To clarify: he doesn’t get the feat, and can’t use it for anything other than his bonded item, but at 7th level a wizard with a bonded ring is treated as having Forge Ring when upgrading his bonded ring.
So for a ring of climbing you would need to be 7th level (Forge Ring), and have enough Fame to purchase a 2500 gp item (normal cost of the ring). You still have to make a spellcraft check to craft the ring.
3. No. You can change your bonded item to another magical item with a ritual that costs 200 gp per wizard level. You would have to already possess the ring of wizardry I (bought at full price). If you do this
Quote:If a bonded object's owner dies, or the item is replaced, the object reverts to being an ordinary masterwork item of the appropriate type.The ring of climbing would revert to being a masterwork ring with no magical properties.
4. Yes, you can upgrade it. You must have enough fame to be allowed to buy a 40,000 gp item (the normal price of a ring of wizardry II) and the cost to you would be 10,000 gp (the difference between the costs of a Type I and Type II ring). You must still make a spellcraft check using the crafting rules, including the increased DCs if you are not Caster Level 11 and/or cannot cast the limited wish spell.
well written and explained. would only ad that can take 10 on spellcraft.