Golden Sun 2 - The Lost Age

Blacksmith (some weapons and defense items)

In Yarama Village, Blacksmith is located in the house close to a broken wood. He is the one lies on the bed. Go to talk to him if you have certain items, he can make weapons and defense items out of them. There are quite a few of this kind of items. Also, this blacksmith also can re-polish the rusted weapons for you.

Items for blacksmith:
Aqua-stone Turn in to many aqua power items. The best is to get the Ply Well ring, it can restore 160HP of the entire party.
Earth-stone There are quite a few of them. Two can be found in the dwarf town after you destroy the stone wall. Can be made into a powerful axe.
Feather One in the old town with a trident piece. Has the elemental power of wind. The items are made will boost up speed. There is a vest can restore 400HP of one person.
Fire flag (?) There are two in the Magma Mountain (the read mountain). Can be made into a sword or a strong shell. Shell is a better choice. 
Star stone (ice stone) There are two in the swap land caves. Can be made into a hail maze.
Gold Block One in the Mars Light House and a couple more will be found after in other caves (have teleport circles). Can be turned in to a powerful sword, called Excalibur. Don't get the Staff made out of the Gold. It's a good staff, but the sword is a much better Choice. 
Black stone / Black Matter (cursed) One will be received after you defeating the two bad guys in the Jupiter LH. One located at blizzard town, using dig to get it out of snow. Also, some higher level monster will drop it. All of them can be make into quite powerful cursed items.
Dragon Skin Only two of this. One is found on this village in the island at far west, close to the boundary waterfall.  Another one is found in the town by the big hole (use reveal at the center door of the temple to get inside). It will be made to a strong amour (only amours). 
(unknown) There is only one of this. It is found in the hidden cave of the first desert. It is really obvious to see, and you just need to use dig to get it.
To get Excalibur, try to get an amour or another defense item out it. Since there are three or four of the gold block, the first one, just let them be defense items. Then the third one might be Excalibur. If it's not working, then equip all the defense items made out of gold block to one person, and give the gold block to the same person, and then ask the blacksmith. Also try give the gold block to Mia.
To get Dark Side sword, do the same as for Excalibur. But there are many more dark matters than Gold black. If you accidentally run out of dark matter, just go to the "turtle island", and fight in the hall way. The monsters there might drop one, but it's a rare drop.
 
Rusted Weapons:

Blue Mountain: when you use dry to exit, it is in the chess box.

The tower next to the first town: in the chess box, where there are two broken bridges, and a stream at the bottom.

Brown Mountain: in the puzzle where you need to use growth to find out the way.

Treasure Island: one of the six chess boxes in the second screen.

Turtle Island: Continue going left at where you get the Venus Djinni.
Lamuri: use dig at where the butterfly is, (the butterfly, which is close to the vine and the chicken).

(?) = not sure

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