in your place i would finish al the quests first and then start gearing
the end of quests is in dane when you attack the castle with a flying griffon and bomb some cultists
after that, there is a npc next to the portal giving you a set of equipment (the npc at the anvil has the same option!)
you can get this set as often as you want, everytime with different stats on the gearpieces
once you have stats you are OK with for gearing further press ctrl M for dungeons and select the green thing (there are 2: 1 for gearing with a grp and one for singleplayers)
the items you get you can convert with "tools" from the NPC at the anvil
gear -> dust
the other thing -> mithril materials
dust can be obtained with negotiant too, the other thing not
on the anvil you can take a look on what you need to make blue items (next level of gear)
and so on...
population wont be a problem for gearing as you can do it completely alone if you like

only about amalgam i dont know, i gain mine from battleground but i think with alchemy you can also get some or with astralship