After the events of that year, the sword resided in the Headmaster’s office and was kept safe within a glass case. This caused the sword to be imbued with basilisk venom (since goblin-made items only absorb what makes them stronger) and hence gained the ability to destroy Horcruxes, although Harry instead used one of the Basilisk's fangs to destroy the diary, which eliminated the sentient memory of Tom Riddle it contained and restored Ginny's vitality. Harry used the sword to kill the Basilisk, which was hiding inside the bowels of the Chamber. In May of 1993, the sword materialised inside the old school Sorting Hat and appeared to Harry Potter, to whom the hat was given when he arrived in the Chamber of Secrets to save his best friend's sister, Ginny Weasley, from being drained of her life force by Tom Riddle's Diary and eaten by the Basilisk. Harry slays Slytherin's Basilisk with Gryffindor's sword " A gleaming silver sword had appeared inside the hat, its handle glittering with rubies the size of eggs." - Harry Potter holding the Sword of Gryffindor for the first time. The Sword magically appearing in the Sorting Hat
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This was a result of the cultural understanding of ownership that goblin-made items rightfully belonged to goblins, rather than the heirs of those who may have purchased them, a cultural understanding that should have been honoured by the wizards. The story persisted, in some sections of the goblin community, that Gryffindor actually stole the sword from Ragnuk. The goblin king took the threat seriously and left Gryffindor in possession of his rightful property, but remained resentful until he died. Instead he sent them back to their king bewitched, to deliver the threat that if he ever tried to steal from Gryffindor again, Gryffindor would unsheathe the sword against them all. Gryffindor defended himself with his wand, but did not kill his attackers. When it was finished, Ragnuk coveted it so much that he pretended that Gryffindor had stolen it from him, and sent minions to steal it back. The sword was made to Godric Gryffindor's specifications by Ragnuk the First, finest of the goblin silversmiths, and therefore King (in goblin culture, the ruler does not work less than the others, but more skillfully). Godric Gryffindor's name is engraved just beneath the hilt. Fashioned from pure silver, it is inset with rubies, the stone that represents Gryffindor in the hour-glasses that count the house points at Hogwarts. The sword of Gryffindor was made in the 10th century by goblins, the magical world's most skilled metalworkers, and is therefore enchanted.
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Godric Gryffindor, the original owner of the Sword