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From Diablo Wiki
Charm
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[[Image:Charms.jpg|left|frame]]
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Charms are small items that, when identified and placed in a character's inventory, provide a steady, passive benefit. Charms boost things like resistance, hit points, hit recovery time, damage, accuracy, magic find, and grand charms can even give +1 to entire skill trees. Charms are only magical, or unique. There are no rare, set, or crafted charms.