Yes, the cash flow does go up a bit, but it never reaches the point of
Morrowind or
Oblivion, where you quickly have more cash than you can possibly spend. But THAT is really only because item prices wildly vary, and you can spend several hundred thousand each on a ship and a house. (sadly, you can only own one house)
Note that for each material you go above steel, the value of an item doubles:
- Leather x0.166
- Chain - x0.333
- Iron - x0.500
- Steel - x1
- Silver - x2
- Elven - x4
- Dwarven - x8
- Mithril - x16
- Adamantium - x32
- Ebony - x64
- Orcish - x128
- Daedric - x256
So yeah, as you find better materials, you can make a good fortune off of selling them, and gold will cease to be a problem.
Hence, also another thing to learn in
Daggerfall is what items are worth grabbing. Given that they don't give you the gold value of weapons/armor, you have to learn this yourself, and hence know what to toss to make room. As a general rule, armor sells for more than weapons, but some weapons, like the katana and especially dai-katana, have good sale values; you can fetch a few hundred from a steel dai-katana, and potentially over 100,000 for a daedric one, if your mercantile skill is good.