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Davy's post already explains it pretty well.
However, as a rule to live by, it's best to loot/level against enemies are within 10 levels of your own notoriety. Which means, don't think that a bunch of bandits are a lonely level 10 boss is what you should be fighting. If you're level 40+, then Raven's Cove, Tormenta, and Las Plugas of Padres is for you.
It's basically luck. Simple. But, in order to make something a looting and leveling opprotunity, stick with your levels. And don't always race to Darkhart and Foulberto are surefire ways to find your famed weapons.
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