Yeah, that can be a real pain earlier in the game... All I can say is save your gold and buy magical weapons... And do sidequests.. Like the temple one.. to get more gold. If you're short on cash, you might also consider going ankheg hunting and delivering a load, one shell at a time, to the smithy. But you might not be powerful enough at this point. Either way, it's good advice to keep in mind.
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