In swashbuckling days, the swordsmiths of Toledo were world renowned. They're still here and still turning out swords today. Toledo is equally renowned for its damasquinado, or damascene work, the Moorish art of inlaying gold, even copper or silver threads, against a matte black steel backdrop. Today Toledo is filled with souvenir shops hawking damascene. The price depends on whether the item is handcrafted or machine made. Sometimes machine-made damascene is passed off as the more expensive handcrafted item, so you have to shop carefully. Bargaining is perfectly acceptable in Toledo, but if you get the price down, you can't pay with a credit card -- only cash.
Marzipan (called mazapán locally) is often prepared by nuns and is a local specialty. Many shops in town specialize in this treat made of sweet almond paste.
The province of Toledo is also renowned for its pottery, which is sold in so many shops at competitive prices that it's almost unnecessary to recommend specific branches hawking these wares. However, over the years I've found that the prices at the large roadside emporiums on the outskirts of town on the main road to Madrid often have better bargains than the shops within the city walls, where rents are higher.
