He said it had not left his side I think he has it with him…after Pinocchio tricked him into giving it up last time I don’t think he’d let it leave his side. We know it wasn’t buried in the same place it was it would make sense that he would hide it in the clock tower though. It’s an open possibility it would sure be amazing if the heros face off agains the villains over the dagger just for it to end up being fake