dynamicv is wrong; drwx------ (700) are the correct permissions for your Desktop--any stock Mac will have those permissions, and it's completely normal (it just means that nobody but you has access to it). Even if you didn't have read access, you could still see it in the Finder, otherwise other users' home folders would be invisible, which they're not.
I'm assuming you can still put stuff on the Desktop? If so, then it must exist. (If not, it's just been deleted and you can safely re-create it--just make a new folder called "Desktop" and it will automatically be "blessed" as your Desktop folder, though I thought this folder was created automatically after a reboot anyway.) Try opening a terminal window and typing "ls -al" -- if it exists, this will show it, period.
Assuming it exists, it's probably had it's "invisible" bit set--this is a MacOS (not Unix) flag that tells the Finder not to show the file (the original MacOS used it to hide files from the user, and it still works though .naming is now the "preferred" method).
If this is the issue, there are share/freeware apps that can set this for you. Sorry, but I don't know what any of them are, but VersionTracker will find them for you.