This is actually a very practical idea that should be extended to all smith vendors. One of the significant limitations in the game is the availability of ore and the extremely slow spawn rate in mines. From my perspective, the development of the smithing skill is the key to making steady progress in the game without cheating.
Looking at it from an immersion standpoint, all that's needed now are a couple of gritty young NPCs who work area mines to supply the smiths with ore to keep themselves fed. ;-)
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