Swords are a type of craftable item. There are thirty different hilts and 9 different blades, which can be combined to create 270 different swords. The hilts each belong to one of six categories: Wood, Iron Wood, Iron, Curved, Mecha and Demonic. The Wood, Iron Wood, Iron and Mecha can also have gems added to make more hilts.
The blades have three different categores: Iron, Mecha and Demonic. The iron blades can have gems added.
For a detailed look at sword creation, please look here : fj-items-database.wikia.com/wiki/Swords