Some people believe you have to hang a horseshoe up in the U shape to keep the luck from running out. Others believe you hang it pointing down so the luck runs into the owner. All agree that any horseshoe hung up must have been worn by a horse for it to be lucky.
If the horseshoe is stolen or borrowed the luck still goes towards the owner. If you find a horse shoe then the luck is yours as you are the new owner.
It is said that faeries and such do not like iron and will not cross a threshold that has an iron horseshoe above it. Supposedly houses that had a horseshoe hanging up did not suffer any loss of thimbles, babies or old folk. One must believe in faeries to agree that this is a fact and not just a story.
Another story tells of how the devil heard the blacksmith hammering away and he decided that he wanted his hooves shod. Well, when the blacksmith finished the devil was in such pain that he begged the blacksmith to remove the shoes. The blacksmith would not remove them until the devil promised to never enter a house with a horseshoe hanging over the door.
So whether or not you believe in faeries, the devil story or just all around good luck, horse shoes are fun. I have shown some here that have been made into decorative and useful objects.
I also made a treasury of horseshoes;
~may the luck of the shoe be with you~