Some Dwarves, the sons of Ivaldi, made the great ship Skidbladnir, and gave it to Freyr. It is so big that all the Aesir, with weapons and armor, can find room in it, and where ever it is going, a breeze springs up as soon as its sail is hoisted. It can also be folded together like a cloth and be kept in ones pouch.
Once for a joke Loki cut off all of Sif's hair. Thor did not see the humor in this, and would have broken every bone in Loki's body, had Loki not persuaded the Dark Elves to make hair from gold for Sif. This hair, once placed on Sif's head would grow like other hair. The son's of Ivaldi made not only the golden hair, but the spear called Gungnir, which is now carried by great Odin himself. Then Loki wagered his head with a Dwarf called Brokk that his brother Eitri, who was a master craftsman, would not be able to make three other treasures as fine as the ones made by Ivaldi's sons.
With his brother Brokk working the bellows, Eitri forged a boar with bristles of gold, the gold ring called Draupnir, and last out of the furnace was the all - powerful hammer Mjollnir. Then Loki brought Ivaldi's sons treasures to the Aesir to be judged. They saw that the spear never missed its mark, and so it was given to Odin. When the golden hair was placed on Sif's head it grew right to her skin, and Skidbladnir was deemed the most wonderful of ships.
Then Brokk brought before the Aesir, the labors of Eitri. To Odin he gave the ring Draupnir, telling him that every ninth night, eight others just as heavy, would drop from it. To Freyr he gave the golden bristled boar, telling him that it could run through the air, and over the sea by day or night, faster than any horse. It would also illuminate the sky with its brilliance no matter how dark or gloomy it was. To the mighty Thor he gave the hammer Mjollnir, and told him that it could hit anything in its path. He also said that no matter how far he threw it he would never lose it because it would always return to the throwers hand. Also if he desired it, it could become so small he could keep it in his shirt.
The decision of the Gods was that the hammer was the most valuable of all the treasures and the best defense against the Frost Ogres. They decided that Brokk and Eitri had won the wager. When the Dwarf tried to capture Loki he was already a long way off because Loki had shoes in which he could run through the air, and over the sea. The Dwarf asked Thor to capture Loki, and Thor was more than happy to oblige. Thor knew that the bargain between the Dwarves and Loki was a legal one that was sealed in honor, so he had no choice but to capture Loki, and make him hold up his end of the deal.
The Dwarf , after becoming tired of listening to Loki's attempts at lying his way out of the pledge, took a knife and tried to pierce holes in Loki's lips to sew them shut, but the knife would not cut. Then he said that his brothers awl would be better, and as soon as he mentioned it there it was there in his hand. Dwarf magic is very powerful indeed ! Brokk then sewed up Loki's lips, and the name of the awl that he used was Vartari. Well, at least Loki did not lose his head according to the story.
As we have seen Dwarves are very complex little creatures who live in a dark world of earth and rocks. They can create beautiful works of art, and magical things that are both a blessing, and very practical when used by the Gods and Goddesses. But they have a dark side to their personalities as well. They are greedy little things that will try to trick you out of whatever it is that you have that they want. And according to the Eddas they are not afraid to use violence to get what it is that they want. If you really cross them, or make them mad, they will use their magic on you, or possibly even worse put a curse on you. It is better to graciously acknowledge them for their craftsmanship, but keep a fair distance from them otherwise. And never, ever enter into a deal with them . They really can't be trusted !
Go with Odin's wisdom, Freyja's love, and Thor's protection !