The points will be divided into the stats of the item.
So:
Warrior's Falchion
+15 (+7 from red diamond)
+15 (+7 from red diamond)
(edit)
It's also a way to make stronger bows, which are great for auto.
Guy 1: "Hey, see that car?"
Guy 2: "What car?"
-screeeech-
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ign = Kazura
Server = Cancer 2
Element = Fire