Gemblade

The Gemblade or the Gemblade +1 can be found in the Coast Way Forest in Baldur's Gate: Siege of Dragonspear. This Dagger has a 20% chance of producing a gem in the wielder's inventory with each successful attack. Each success removes one of 30 charges from the item.

Once all charges are depleted, the item becomes the Gemblade +2. It no longer generates gems, but it deals more damage and bestows the wielder with a +1 Intelligence bonus.