Amulet

Amulets are charms that are usually hung on one's neck. They can contain special stones, herbs, or inscriptions and are most often used to protect the wearer against things such as sickness, bad luck, or witchcraft. This was obviously the purpose of the amulet given to King Graham by the gypsy. It protected him from "bad magic", as Madam Mushka called it. This is why he came to no harm when he encountered the nasty witch who lived in the Dark Forest of Serenia. It was of no use in protecting him form Mordack's much more powerful magic.

The amulet that Graham found on the enchanted isle protected its wearer from beig irrevocably lost. Its properties appear quite similar to the Ruby Slippers, with which one clicks their heals together and says "There is no place like home!"