LotR -- Book 1 - Chapter 01 - A Long-Expected Party

[Guinevere]

Originally Posted by Estelyn Telcontar

I noticed one detail this time around that hadn't particularly stood out to me before - the fact that the Dwarf-made toys are also magical. I've never thought of Dwarves as having magical abilities such as the Elves did, but obviously they must have some. What do you think is the nature of Dwarven magic?

Well, after all, the Dwarves had made the magical secret door to the Lonely Mountain, and Narvi made the secret door to Moria.
In the first age, the Dragon-helm of Dor Lomin was made by the Dwarf Telchar, and so was Narsil, Elendil's Sword, as well as the knife Angrist. All of those items have certain magical qualities.
I think their magic is more like a craft, and apparently only a few of them were so skilled, and much was forgotten later. Thorin & co had no idea how to make the door visible, let alone open it, and Gimli was no help either.