I use the goblins as a bank,
1) sell all useless junk to them
2) get about 40000 gold
3) repeat every time you level
I also got the blood stone by putting an exploding barrel next to the totem and putting oil down as a fuse and led it far enough away that it won't trigger a fight. I had to move their drum's and stuff out of the way so that the explosion didn't break them. The totem died, I got the blood stone, but the surrounding goblins don't stop doing their weird ritual thing
4) once you have a boat load of gold, kill the goblins and get a lot of your stuff back
5) win