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178km (110 miles) SW of Mexico City; 80km (50 miles) SW of Cuernavaca; 296km (184 miles) NE of Acapulco

In Mexico and around the world, the town of Taxco de Alarcón -- most commonly known simply as Taxco (Tahs-koh) -- is synonymous with silver. The town's geography and architecture are equally precious: Taxco sits at nearly 1,515m (4,969 ft.) on a hill among hills, and almost any point in the city offers fantastic views.

Hernán Cortez discovered Taxco as he combed the area for treasure, but its rich caches of silver weren't fully exploited for another 2 centuries. In 1751, the French prospector Joseph de la Borda -- who came to be known locally as José -- commissioned the baroque Santa Prisca Church that dominates Taxco's zócalo (Plaza Borda) as a way of giving something back to the town. In the mid-1700s, Borda was considered the richest man in New Spain.

The fact that Taxco has become Mexico's most renowned center for silver design, even though it now mines only a small amount of silver, is the work of an American, William Spratling. Spratling arrived in the late 1920s with the intention of writing a book. He soon noticed the skill of the local craftsmen and opened a workshop to produce handmade silver jewelry and tableware based on pre-Hispanic art, which he exported to the U.S. in bulk. The workshops flourished, and Taxco's reputation grew.

Today most of the residents of this town are involved in the silver industry in some way. Taxco is home to hundreds (some say up to 900) of silver shops and outlets, ranging from sleek galleries to small stands in front of stucco homes. You'll find silver in all of its forms here -- the jewelry basics, tea sets, silverware, candelabras, picture frames, and napkin holders.

The tiny one-man factories that line the winding cobbled streets all the way up into the hills supply most of Taxco's silverwork. "Bargains" are relative, but nowhere else will you find this combination of diversity, quality, and rock-bottom prices. Generally speaking, the larger shops that most obviously cater to the tourist trade will have the highest prices -- but they may be the only ones to offer "that special something" you're looking for. For classic designs in jewelry or other silver items, shop around, and wander the back streets and smaller venues.

You can get an idea of what Taxco is like by spending an afternoon, but there's much more to this picturesque town than just the Plaza Borda and the shops surrounding it. Stay overnight, wander its steep cobblestone streets, and you'll discover little plazas, fine churches, and, of course, an abundance of silversmiths' shops.

The main part of town is relatively flat. It stretches up the hillside from the highway, and it's a steep but brief walk up. White VW minibuses, called combis, make the circuit through and around town, picking up and dropping off passengers along the route, from about 7am until 9pm. These taxis are inexpensive (about 50 pesos from the bus station to most hotels), and you should use them even if you arrive by car, because parking is practically impossible. Also, the streets are so narrow and steep that most visitors find them nerve-racking. Find a secured parking lot for your car, or leave it at your hotel and forget about it until you leave.

Warning: Self-appointed guides will likely approach you in the zócalo (Plaza Borda) and offer their services -- they get a cut of all you buy in the shops they take you to. Before hiring a guide, ask to see his SECTUR (Tourism Secretary) credentials. The Department of Tourism office on the highway at the north end of town can recommend a licensed guide.