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That amount of ore is rather much for a piece of armor that will be replaced by a free and better version not that much later in the game.
I don't think I've ever had to buy a new set of armor in either Gothic or Gothic 2 as the game will give you a new set once it's needed to deal with stronger enemies.
My opinion is to buy it . There are many ways to get ore ,but you don't get better defense too often.