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The Forge of the Nine is a smithy located in Baldur's Gate's Lower City west of the Elfsong Tavern.
Dammon can be found here working the forge if he has survived Act 1 and Act 2. Otherwise no vendor will be present at the location.
Basement
The basement of the Forge of the Nine can be accessed by getting past a locked door on the west facing side of the building. The basement contains an assortment of enchanted weapons and armour. A breakable wall can be found behind some crates that lead to the Devil's Fee's basement.
Notable Loot
Sold by Dammon:
Found in a Gilded Chest in the basement: