Originally Posted by Method
Thank you for this research. I edited the guide to reflect the paralyze and absorb health enchantments as the best. As far as the gems go, I just restocked Farengar over and over and over and..... I suppose you could splurge on common soul gems if you don't mind losing more gold to level up.
The best enchantment to have on your weapons is the only enchantment he didn't list: Banish. I can typically sell any iron dagger enchanted with Banish for anywhere between 1,400-1,800 gold, depending on the gender of the merchant. I can sell them for around 2,000-2,500 gold if I dual-enchant them with Absorb Health & Banish. I don't know if Paralyze/Banish would sell more, though.
It's recommended that you either invest in the merchant's business or increase their bartering price by 1,000 if you decide to sell these daggers, as most merchants most likely won't have 2,000 gold to give you for a single dagger.