Aside from its value as a weapon, it is a quest item for the Leatherfoot
Raiders in Rivervale (talk to npc's upstairs at the bank).

>
> Anyhow, what are these things selling for? I may keep it as a memento
> but I really hate the way a dagger looks in your hands, a spear or
> scimitar is so much more intimidating. It is pretty cool though.
>
> Kitasi
> The mournful bard of Faydwer on E'ci
> "and no one shall work for money,
> and no one shall work for fame"
> "but each for the joy of the working,
> and each to his separate star..."