The strange thing is, as ElvisNews.com points out, that the scarf is in the book "Elvis by the Presleys". I just checked my copy and it’s true, right there on page 173 is a picture of the scarf. Does that mean that she never read the book she was part of writing? Makes you wonder, doesn't it?
Speaking of scarves, Elvis must have thrown out tens of thousands of them to fans in the audiences during the 70's. In the movie "This is Elvis" you can watch him give away ten scarves (I counted!) during the song "Love Me" from June 1977. Charlie Hodge is following him around the stage with a bunch of scarves in his hands, and on the piano you can clearly see a whole supply of white, red and blue scarves.
Where are those scarves now? Well, maybe many fans did what Lisa Marie talked about, got them framed and hung them on the wall.
Another part of the answer is found by making a search on Ebay that reveals you can bid on a piece of a scarf. Seems the idea is to hack up a scarf in 150 pieces or so and then have every piece framed together with a photo from that particularly concert where the scarf was thrown by Elvis. I found pieces you could bid on from both his last Memphis concert on July 5, 1976 and from a concert at Nassau Coliseum on June 24, 1973.
But wait! There is also a silk scarf you can bid on that according to the seller was purchased at a concert on March 21, 1976, with a stamped signature on it. I have one just like this that I bought through a fan club sometime during the 80's (see picture above). Maybe I should have it framed!