Thorin looks for the Arkenstone, the most valuable object in the hoard. A raven brings the news that Dain is coming with five hundred dwarves.
Bilbo takes the Arkenstone and goes to Bombur, who is on guard during the night, and volunteers to take his watch for him. When Bombur agrees, he puts on his ring of invisibility and goes to the elves. He asks to be taken to Bard, and gives Bard the Arkenstone to use in negotiating peace with Thorin. As Bilbo leaves camp, Gandalf reappears.
