Southsea Holdfast in Thousand Needles
Southsea Holdfast in Thousand Needles is a great place for you to farm Silk Cloth at the upper 30s or early 40s. There are probably close to 100 pirates that hang out along this ridge, all of them holding some valuable Silk Cloth! Let's just say that regardless of your level I doubt you will run out of pirates here to kill, just don't forget to clear the inside of the houses as well. The best part about these pirates is they are just spread out enough for you to single pull them or if you wanted to round up a few and AoE them down. It all depends on which end of the camp you go to.
At the northern end of the pirates they are mostly spread out and lower level than the pirates at the southern end. Also in about the middle of the camp is an elite cave of ogres, which obviously unless you are higher level I'd highly recommend staying away from. Of course the drop rate of cloth on them is much higher than it is off the pirates, chances are you won't be able to kill them as fast or as efficiently.
As far as other goodies go you will find that there are quite a few different locations for chests to spawn and many different herb and ore nodes throughout the camp. The most common herb you will find here is Sungrass which is actually a really good thing since it seems to go for an insane amount on most servers. On my server a stack of Sungrass usually goes for somewhere around 50g or more! As far as ore goes you will find Mithril Ore here, but you will have to walk a ways out of the camp and find your way up mountain side for every Mithril node that you see.
Silk Cloth Farming Video:
Items of Interest
Silk Cloth
Mageweave Cloth
Sungrass
Liferoot
Mirthril Ore
Vendor Trash
Greens