In Panama, you can purchase a variety of fine products made by local crafts. The most famous are the "Molas" - vibrant local cotton fabric, decorated with abstract paintings. They are made by women of the tribe "coon".
Crafts from western regions and from the Azuero peninsula produce an extensive range of pottery, masks, leather and sombreros.
Pay particular attention to the Tagua - A nut palm tree that grows in South America, commonly known as vegetable ivory. It is used for manufacturing of buttons, necklaces, figurines ,various decorations etc. Each nut is unique and has a special pattern. It is better to buy in Darien.
Bright colored dresses and shoulder bags "charakas" the are hallmark of the tribes "Ngobe-Bugle." However, the famous Panama hats are usually produced not here but in the factories of Ecuador.
Panamanian buses - very bright, very noisy (croaking, roaring, etc. signals is not uncommon). They have romantic names like "Beautiful Magdalena" or "Darien tiger." Painted buses are common not only in Panama, but is a sign of a Latin American. Yet perhaps nowhere else, they do not look as fun and exotic as it is here. Buses have let to local folklore about them, jokes, song, And their smaller versions of papier-mache - being sold at any souvenir shop.
Electronics, clothing and cosmetics is better to buy in the duty-free trade in Colon.
The best souvenirs of Panama - the traditional headgear - "panamas". It makes no sense to explain the origin of the name "panamas". A Panama weaved from straw (dried stems of the plant hipihapa). They are lightweight, durable, and are the perfect hat in the tropics.
The fabric of the hats is very flexible, they re-form, even if you accidentally sit on them. They can be rolled up and stored in rolls.
Bargaining should be used only at market stalls and in case of buying from hand to hand, in shops and handicraft markets, bargaining is not worth it.