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The blacksmith's set is a set of clothing intended for those training their Smithing skills. All of the pieces are earned as rewards from the Squeal of Fortune minigame.
Wearing an item from the set gives a 1% (or 0.1 XP, whichever is higher) bonus to any Smithing experience gained, and the full set adds a further 1% granting a total of 6% if all items are worn.