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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 Treasure Hunter 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.