I've looked all over to find the blacksmith's key and even looked through older threads on it, but the advice they gave is leading me nowhere. They say it's just outside of town by some bushes and the bridge, but I can't find such a place. If anyone can help, that would be appreciated. Also screenshots of the location would be great
Are you sure it's the blacksmith's key (name of it just says "Key", but the description when you mouse over it will mention the blacksmith)? Also, where did you end up finding it? Once you have the key, all you have to do is hand it over to the blacksmith by talking to him, then the Trade option will open up.
Alternatively (if you start a new save), you can just do the other blacksmith quest and ignore the key entirely.
EDIT: I was on the Patreon build, so just to make sure, I downloaded and checked for the key on the Free build, too. I found the key in the exact same place as in the screenshot.
Some SPOILERS here:
If you've already found Real Blacksmith, the key doesn't do anything. It's only used to allow the first, fake, blacksmith to sell you items without having to complete the Sewers. If you gave that guy the key, the shop would shut down again after freeing Real Blacksmith until you found the swindler in the field to return the shop stock.
If you never delivered the key to the fake blacksmith, but still freed Real Blacksmith, he will just open his shop like normal. The blacksmith's key will still be findable out in the field, but it won't serve any purpose since nobody needs it (Real Blacksmith is able to get into his own house just fine, apparently).
I found the key on the path to the left after leaving town. If it's randomized, like the other guy said, I'd add that it was sitting amidst some big, conspicuous, glowing rocks and I was able to pick it up with no battle.