Answer:
I am seen in the water. If seen in the sky, I am in the rainbow, a jay's feather, and lapis lazuli.
The ones who see it may go blind, Contracting the fool's madness. You have to dig to find it, Crush big stones or mine it. Wash dirt clumps in a pan and wait for it to settle, A shiny, precious metal.
A nut cracker up in a tree.
What has two legs but doesn't walk?
What lies in a tunnel of darkness. That can only attack when pulled back?
You use it between your head and your toes, the more it works the thinner it grows.
Difficult
Animal
Easy
Food
Funny
Kids
Logic
What am I?