In Colon main street, facing the market, there stores where you can buy taxfree quality items: sport shoes (Nike, Caterpillar etc), Mont-Blanc and other fountain pens etc.
However, you should walk through Colon with a guide or a taxi driver. It is not safe for a gringo to go alone.
What to buy: Clothes, fountain pens, sport items
What to pay: taxfree
There is a wide array of colorful shops which cater to tourists at the Pier in Colon. You can find fine jewelry, designer clothing, native crafts and cheap junk in vast array. I only bought a refrigerator magnet and a $5 T-shirt in XXL. However, Karen and I did do a little more shopping across the Isthums in Panama City.
Colon also draws local shoppers from throughout Panama because of its duty free bargains.