Nina can craft the elemental swords I think? I hadn't bothered cause I wasn't sure if that would work since dual wielding was disabled? But I suppose if you do craft them you can equip them instead of your main weapon.. In my latest play through I am quite over leveled and magic combined with the dark dragon is pretty OP. Anyways the items for gear upgrades in example armor for your dragon can all be bought at the silent auction. At the auction house there is a room with 3 bunny girls ( don't talk to left or right one they crash my game sometimes..) The middle one however let's you enter the silent auction or an auction at least where the items are random. it's where i bought the mithril for the highest dragon armor and the overlord ring schema etc. It's a pain though had to attend a lot of auctions to get the items I wanted. And btw, you need to buy the auction ticket at the entrance bunny receptionist girl one time think it was 377 gold one time purchase to be able to attend the auctions.
And yes, the city guards were my farm, just walked back and forth between the city entrance and cross roads a lot of guards there..
I'm a bit a confused, isn't what i described above the "silent auction" ? I attended this auction like 30 times before being so fed up that I used a save editor to get the items I wanted, imho the auction repeats the dragon eggs way too often. But i am positive it also brings up items that are used for crafting the elemental swords and other things with Nina.
****** Edt, one question though, do you all need to open the large or small bags of gold individually as well? meaning one by one cause it exits the menu/items screen everytime? and when I spam this action too fast, escape, space, space, escape, space, space repeat. the game crashes..