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.
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