Creative Items/Weapons?

(A bit of storyline surround the finding of a magical item. Note that anything in "()" is not part of the story, but a sidenote.)
As you pull your sword from the dragon's belly, a busrt of flame comes from each of the dragon's wounds as it's firesac breaks and releases all the fire held inside. The dragon falls to the ground with a crash so loud it could wake the dead(and does). When it stops moving you come closer to make sure it's dead. just as you are about to remove the gemstone from it's neck that you were sent to retrieve, the dragon's body starts to smoke and disintigrate. (picture the first boss in "Zelda:Orcarnia of time" when it's body is disintigrating) Within a matter of seconds all that is left is the bones and the gemstone. However, caught inside the ribcage of the dragon you see what looks to be a sword covered in the same black powdery material that covers the ground below the dragon's skeleton.
You reach for the sword and dislodge it from the skeleton, then quickly clean it off with your pant leg. The sword looks to be pure steel with a perfectly cut flat of the blade and with a gemstone on either side of the blade near the hilt. The hilt seems to be made of a gold handguard jutting outward towards the front, and a wooden handle with a metal core, as well as a piece of polished quartz attached to the end of the handle. (note that gemstone is the elemental stone of water and that quartz is the elemental stone of air(lightning and wind)) When you heft the sword it seems unrealistically light, and you question the blade's real content. But you decide to try the weapon out before getting rid of it.
You swing the sword you slew the dragon with as one of the stronger of the bones. The bone quivers for a moment from the blow, but it seems to have not taken even a dent. Next you try the new blade in the same bone, a little farther up the bone to a slightly stronger section. the blade hits and glows bright yellow. When the glow fades and you can see, the bone lies in the ground, cleanly cut, and slightly charred...

...When you return to town for your reward, a man comes up to you and tells you that the sword you hold is the legendary sword curving lightning, named "Dragon's Rage." He tells you that when it strikes an evil creature, it will send out a bolt of electrified water, and sometimes burns the evil creature with highly concentrated electricity...

...You sell your old sword that you slew the dragon with...

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