Peru
A long, narrow, cobble-stoned alleyway with everything from small commercial galleries, to little old men selling their own paintings. Original oil paintings are very cheap, and make a nice, unique and authentic souvenir that'll hang on your wall forever.
Beware - some of the shops lower down sell low quality fakes. These are usually the places that sell other souvenirs too.
To the right of the cathedral, up the hill.
Search Been there