LotR -- Book 1 - Chapter 01 - A Long-Expected Party

[Morwen]

Originally Posted by Estelyn Telcontar

I noticed one detail this time around that hadn't particularly stood out to me before - the fact that the Dwarf-made toys are also magical. I've never thought of Dwarves as having magical abilities such as the Elves did, but obviously they must have some. What do you think is the nature of Dwarven magic?

Reading the line in question, that the toys were of real dwarf make and obviously magical, I thought that "magical" in this case indicated superior craftsmanship the Shire folk didn't understand and couldn't duplicate. The hobbits didn't have any idea how the toys worked and thought them 'magical' but the Dwarves, like Galadriel later in FotR, might not understand why the toys would be described this way.