Renamed Items can't be thrown or placed

I have used /setblock to spawn a chest with an enchanted diamond with a custom name and lore. It spawns fine, but when I take the diamond out and try to throw it (I was trying to throw it into a hopper to trigger other command blocks.) it disappears and is nowhere to be found. The item also disappears if I try to put it in a container. This also happens with blocks that have been renamed using commands. The block cannot be placed and disappears upon right clicking. I am unsure if this is intended, but it seems as though it would be a bug. I'm sorry if this is a duplicate, I couldn't find any thing like it.

This the exact command:

setblock ~1 ~ ~3 minecraft:chest 0 replace {CustomName:"Magic Chest",Items:[{Slot:13,id:264,tag:{display:{Name:"Magic Diamond",Lore:["Use to activate"]},ench:[{id:49,lvl:1}]}}]}