Destroid posted the following at the official forum.

"Yes, last we heard there will be general component bags for each spell level. You'd buy a bag of level 3 components for example. These bags will probably have a limited number of uses. Some components may be rare as to keep some spells from being cast all the time (balance issue). The cost of and capacity of these bags will probably be tweaked during beta."

Which was confirmed by Sporkfires post.

"Destroid has the right information. Characters will be assumed to have the general spell components that they need frequently, so as to minimize the need for micromanagement at that level. So, the system is symbolically there and can be used for flavor and role-playing opportunities, but it will not negatively impact gameplay."

Turbine once again shows incredible insite into what will make this game great. None of the time consuming and boring trouble of rounding up individual reagents or components for spells.