Pearls to Pearls 20 to 1

Okay, I was just checking it it out.  And it looks like if you purchase and item at Granny’s then turn around and melt it down into Pearls (with 4 melting slots unlocked!)  You get 20 to 1 Pearls to Pearls. 

Gold to Gold is 10 to 1, and I’ve never complained about that!  But 20 to 1 is cheating the gamer.  Particularly when you have to pay gold to even melt them down!

A legendary item for only 3 pearls? And you have to pay gold, knowing that you already lost gold by not just selling the item.

What kind of thinking is that flare? Please explain