Answer:
I am a tool for fairies.
I wear a red robe, with staff in hand and a stone in my throat. What am I?
I am the outstretched fingers that seize and hold the wind. Wisdom flows from me in other hands. Upon me are sweet dreams dreamt my merest touch brings laughter.
In all the world, none can compare, I am a tiny weaver; my deadly cloth so silky and fair. What am I?
The more you take away from it the larger it becomes. What is it?
I will disappear every time you say my name.