The gold and black enamel work by local artisans is known throughout Spain. Many shops in Toledo sell decorated plates, sheilds, spoons and key rings.
Sword - Toledo is well known for its swords, so be sure to look for a conquistador sword, which should set you back around US $300. As you can't bring it on a plane, you'll need to send it. Fortunately, many shops will ship it for you for a reasonable price.
Ceramics - Talavera de la Reina (outside of Toledo) has a centuries-old tradition of glazed ceramics. Toledo is filled with handpainted ceramics of varying degrees of quality (upscale shops and boutiques are pricier, but generally carry higher-quality pieces).
Damascene - Another famous handicraft of Toledo is damascene, from the ancient Moorish art of interlacing gold on iron or steel, then firing it so the underlying material oxidizes and becomes black, with the gold in sharp relief. Every shop in Toledo will carry some form of damascene work, most frequently as small decorative plates and jewellery. Damascene also tends to be on the expensive side, so be sure to comparison shop around Toledo.
The region around Toledo and southward in Castilla La Mancha produces typical almond sweets known as
Mazapan, which is not to be confused with the tough, white icing used on wedding cakes that we call "marzipan". Mazapan is glazed, and sometimes decorated with pine nuts (piñones).
Traditions and events

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