If it was called Andurs amulet of Arkay, then it was a quest item and you couldn't sell it, you probably picked up some random amulet of Arkay.
For the quest, you need specifically Andurs amulet of Arkay and it can be found in the Hall of Dead.
I took it from the Hall of the Dead in Whiterun, on the table by some wreaths of flowers and I'm 99% sure I sold it. It was before I'd even been to Windhelm where I found Torbjorn who asked me to go and get it. It's strange because other quest items such as my unusual gems can't be sold, dropped or moved out of my inventory. Perhaps it's a bug? Anyway, I appreciate the help. If I find an Amulet of Arkay I'll try and give it to him, I expect he probably won't accept it but whatever. I'll just have to kill him to delete the quest.