Charms are accessory items found in Diablo II: Lord of Destruction. These items only need to be present in the character's inventory and identified for their magical attributes to take effect. They do not function if placed inside your character's Stash or inside a Horadric Cube (even if that Horadric Cube is located in your hero's Inventory).
Generally, smaller is actually better as far as Charms are concerned, however, some Magic Prefixes and Suffixes are only available on the larger Charms. There are also a few affixes that are actually more effective on Grand charms than they are on small charms (+Attack Rating, for example).
When using Charms you can really dig yourself into a hole where you cannot pick up any more items. It's best to pick only the best Charms to keep and throw the rest away. As you find better Charms, get rid of older ones. Try to keep some space to pick up one or two large items. If you want to totally fill your inventory with Charms you certainly can. Just don't be surprised when other party members pick up good equipment dropped by monsters because you don't have enough room in your Backpack to pick them up!
Their effects are varied, some ranging from increasing one's life to even increasing the amount of Gold enemies drop upon death. Store Life or Resistance Charms in your Stash and equip them before facing a tough boss.
They come in varying sizes, each size having three types of artwork, which isn't in any way related to their stats:
- Small - One inventory space.
- Large - Two inventory spaces on top of each other like a Dagger.
- Grand - Three inventory spaces on top of each other like a Short Sword.
There are only two types of Charms: Magic and Unique. Rare, set or crafted charms have not been introduced. Magic Charms contain at the most 2 attributes which increase in quality depending on the size of the charm. All 3 Unique Charms are associated with Battle.net only Quests.
Charms are a sort of collector's item in Diablo 2. It brings a subtle strategy in the game by forcing item searchers to decide between increased stats to inventory space.