Is it possible to "upgrade" the crafting materials?

The crafting materials you get from disenchanting magic and rare equipment are tied to the difficulty level you're playing. Is it possible to convert the leftovers from the previous difficulty to the new ones? If so, how?

Solution 1:

As of the 1.05 patch, the Blacksmith can now upgrade crafting reagents as well as tomes at a rate of 10:1. So 10 blue materials from Normal level will become 1 blue material from Nightmare level. The option is available under the Craft Weapons tab, under a section called "Crafting Materials".

Solution 2:

No, there is no way to convert crafting materials into the next level

The best items you can craft with a specific level of crafting materials will only break down into that same level of crafting material

However, you can sell them at the AH and buy the next level materials with the money :)