If you want to upgrade artifacts that aren't already bound to you, attempting to upgrade them will result in a character bound item even though the refining window says it will be bind on equip. I wasted a bind on equip waters of elah'zad trying to upgrade one for a guildmate but now it's wasted and I probably have to feed it into my own artifact.
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kinda makes sense though they made the coffer coal wards BoP. wouldn't have done much good for them if you could just trade it, upgrade things with your BoP coal ward and then trade it back huh?
Note to self: don't touch anything....
BUT I DID NOT USE THE NEW COALESCENT WARDS FROM BOUND WONDROUS COFFERS, I DON'T KNOW IF THOSE WILL RESULT IN BOUND ENCHANTMENTS.