Dirks have been a favorite everyday sidearm of the Dunhill Confederacy for centuries. The long blade of a dirk naturally gives a +1 bonus to damage rolls but reduces its thrown range to 10/30.
Divining Dirks all possess great durability, retaining a sharp edge even after some abuse that would dull lesser blades. The wielder gains no magical bonus to attack and damage rolls with this weapon. The pommel cap usually has a perforated design which gives some hint about what it locates.
When created, a Divining Dirk attunes to a specific type of item, usually something like gold, brains, hearts, a specific type of gem, bones, a specific poison, or fresh water. Once enchanted, it will point the way to the closest instance of its attuned item within 200 feet not already on the wielder's person. Use a bonus action to flip the dirk into the air, and it lands with its tip pointing in the appropriate direction. If it detects nothing within range, it points randomly.
Divining Dirks have several limitations. Any amount of lead will prevent the dirk from detecting an item. Dirks rarely fall quietly, so using a Divining Dirk from stealth attracts attention. The dirk can only indicate horizontal direction laying on a floor or the ground. Dirks detect one thing only, but they can detect it once per round as many times as needed. Dirks can't change their attuned item through any means other than a wish spell.
Tor-Nazar has made more than a few Divining Dirks in his day. He still uses it as a suggested final project for his Item Enchantment class at the College, so a number of his students have made them as well.