The entire fourth season of Arrow was to be about Magic. So far the only magic we have seen on the show is of the Lazarus Pit, Vixen (?) and Damien Darhk. Baron Reiter on the other hand is searching for a mystical artifact. What if the artifact he is looking for is the source of Damien Darhk's powers? Since Oliver has seen magic before, it has to be from the island but Reiter doesnt have any mystical abilities so maybe the artifact he is looking for on the island is the statue Darhk keeps in his closet. That's my theory of the magic of Arrow. What are yours?