I'm only just starting the game, but can tell you that the inventory of Gerard in Farglow is like the contents of chests etc: I traded with him then decided to reload my game and wow! his inventory was very different eg #1 he offered only uncommon bows but #2 he offered uncommon bows, sword and cleavers. The armour available also changed.

I had not levelled or anything in the meantime.

"Man is the only animal that both laughs and weeps, for he is the only animal that is struck with the difference between what things are and what they ought to be." William Hazlitt