The chest was stolen from Edward by the witch who called herself Dahlia and was given to a giant for safekeeping in the Land of the Clouds. Sir Graham won it back as part of the quest that led him to become King of Daventry. Sometime after passed after the death of his Queen, when King Edward saved the Princess Dahlia of Cumberland from a pack of wolves and they got married, but Queen Dahlia, revealed to be a wicked witch and stole the Magic Chest of Gold from Edward. Without the Chest he could buy no more food and pay no more soldiers.