The power of the gem is based on what ilvl gear it is put into. When you put in a gem on higher ilvl gear it gets higher stats/power on it.
The gear that you can upgrade goes all the way to ilvl 556 and there are 36 Levels of upgrades in total. The currency to upgrade your gear is “Bronze”.
You cannot upgrade your gear directly as much as you want, there are some checkpoints. To upgrade to higher ilvl gear you must also reach higher ilvl on your character. For example upgrading a piece of gear from 346 to 374 requires that your character ilvl is 360 ilvl.
Where to upgrade Gear in Mist of Pandaria Remix
The NPC to upgrade your gear is located in Vale of Eternal Blossom in both Alliance (Shrine of Seven Stars) and Horde side (Shrine of Two Moons).
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