It sounds like you took the Emerald path. The Sapphire path has a special silver goblet that is attained more naturally through progression (you simply get it out of a chest), and as such is considered the easier path. The Emerald path requires a jeweled dagger and it takes a little more work to get.

On Level 2 of the caves, you'll see an alcove with a note that says "Dagger in, Dagger out." To solve this puzzle, you have to put a dagger into the niche. The niche will close, devouring the dagger. Press the button on the north wall. A lever will appear. Pull the lever. Then push the button on the north wall again. A lock will appear. Use your lockpicks and the wall should open. The chest containing the jeweled dagger that you need is behind this wall.

If the above doesn't work, just keep fiddling with the niche and the wall. It took a bit of that for me to get it, myself.

Old thread but does anyone know if its possible to get both items? I found the Sapphire much later than the Emerald and after getting the jeweled dagger, I couldn't seem to access an area where a secret area ought to be according to some of the videos I watched. Does taking one lock out the other?

I don't think it's possible to get both Draracle gifts without cheating. The first gem that you use also inserts some walls that cut off off the alternate route.

It's probably a good thing as they are both fairly overpowered items for the beginning of the game.

Ah, okay! I just wasn't sure if it was meant to be a choice of which item you'd rather keep for the game or which item you'd rather use for the duration of the cave. Thank you!

I am stuck here. I use the lock pick on the lock, then the lock disappears. The wall is blank then. I push the button, and a wall hole appears. I put any item in the hole, then the hole immediately disappears. Guides say at this point the wall should disappear. But no, nothing. I push the button one more time and then the hole appears again. But that's it. No item nor button push would change anything after that. No pathway appears. It's a bug? I'm frustrated at this point and won't start a new game.

Edit: OK I solved this. It probably was a bug because the hole consumed a second dagger and then the pathway immediately appeared. This is not what the guides say.