Yes, the only talisman shop that sells them is located in the runecrafting guild. Although they do not sell blood. You buy them with guild tokens obtained from the mini-game there.
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kill things like goblins or jsut buy it
Bring a water talisman, a plain tiara then go to the water altar, and use the tiara on it, you will lose the water talisman, but you will obtain a water tiara.
You can buy it at ge or you can do the quest calles rune mysteries so you can actually craft runes.
A mind tiara is a mind talisman that you wear. If you do not know what a mind talisman is, Well than a mind tiara is used for making mind runes, it helps you find the mind runecrafting place and you need a mind tiara/talisman to craft mind runes!
To make a mind tiara, take a normal tiara and a mind talisman to the mind altar.