Bilbo regains consciousness and, finding himself alone, tries to crawl through the tunnel. He finds a ring, which he absentmindedly pockets. He wishes he were back in his comfortable home, eating. As a hobbit, he can orient himself quite well underground, and he continues to descend the tunnel until he comes to a lake that he cannot cross, not knowing how to swim.
Bilbo is spotted by old Gollum, who lives alone on an island in the lake, which he navigates in a small boat. Gollum is a small, slimy, dark creature with pale eyes, named for the sound he makes as he swallows; he preys upon Goblins and fish. Because he lives alone, Gollum is in the habit of speaking to himself in a kind of hissing baby-talk, calling himself “my precious.” Trying to assess Bilbo, he engages him in a game of riddles, at which Bilbo proves his equal.
Gollum decides to get the better of Bilbo by using his birthday present, a ring. When he wears it, he is invisible and can more easily snag his prey. He goes to the hiding place where he keeps the ring, but it is gone. Gollum correctly surmises that Bilbo has it and confronts him, asking what is in his pocket. Bilbo, who does not understand the power of the ring, slips it on his finger as Gollum runs to attack him. Bilbo becomes invisible, and Gollum cannot find him to attack.
Gollum is afraid that without the invisibility of the ring, he will be captured by the Goblins. He panics and runs to escape the cave. Bilbo, who is still invisible, follows him, thereby discovering the way out. Gollum, who can smell Bilbo, blocks his way. Bilbo thinks of killing Gollum, but decides it would not be fair, because Bilbo is invisible and Gollum is unarmed. Bilbo escapes by an extraordinary leap over Gollum’s head and through the passageway, but he runs into the Goblins. As they rush at him, he slips the ring on, becoming invisible, and narrowly escapes to the outside where it is light and the Goblins cannot follow.
