I saw a guy one do a handkerchief routine with a green handkerchief that he said was, if I'm remembering correctly, made of leprechauns or something like that. Of course he had a story around the entire thing that was supposed to be entertaining. I don't recommend using this idea because it's rather unbelievable (and unbelievably cheesy if you ask me), even when you factor in suspension of disbelief, but maybe it'll get you thinking.
Anyway, now an attempt to actually be helpful. What are you looking for in this patter? Do you like story tricks? Or are you looking for a more direct "here it is, now it's gone" approach?
(Don't expect any great ideas to come from me, patter and scripting are my weakness, these questions are more for the benefit of the community.)