|Act II - Gondolia, Old man to the northwest||Making the Most of Mythril, Sage's Stone|
Return to Gondolia during Act II and head to the northwest to find an old man looking out to sea. He asks you to find the missing Sage's Stone that fell to the bottom of the ocean a long time ago.
Zoom over to Nautica and ask the Queen to turn you into a fish, swimming high and south of the Item shop to find the golden Sparkly Spot on the cliff. Return it to the man to complete the quest who will allow you to keep the Sage's Stone too.