To Frigga he said, "You must lend me your falcon dress until I fly to Thrym's dwelling and find out if he knows where Miölnir is."
"If every feather was silver I would give it to you to go on such an errand," Frigga said.
So Loki put on the falcon dress and flew to Jötunheim and came near Thrym's dwelling. He found the Giant upon a hillside putting golden and silver collars upon the necks of his hounds. Loki in the plumage of a falcon perched on the rock above him, watching the Giant with falcon eyes.
And while he was there he heard the Giant speak boastful words. "I put collars of silver and gold on you now, my hounds," said he, "but soon we Giants will have the gold of Asgard to deck our hounds and our steeds, yea, even the necklace of Freya to put upon you, the best of my hounds. For Miölnir, the defence of Asgard, is in Thrym's holding."
Then Loki spoke to him. "Yea, we know that Miölnir is in thy possession, O Thrym," said he, "but know thou that the eyes of the watchful Gods are upon thee."
"Ha, Loki, Shape-changer," said Thrym, "you are there! But all your watching will not help you to find Miölnir. I have buried Thor's hammer eight miles deep in the earth. Find it if you can. It is below the caves of the Dwarfs."
"It is useless for us to search for Thor's hammer," said Loki; "eh Thrym?"
"It is useless for you to search for it," said the Giant sulkily.
"But what a recompense you would gain if you restored Thor's hammer to the Dwellers in Asgard," Loki said.
"No, cunning Loki, I will never restore it, not for any recompense," said Thrym.