When Thráin, father of the great Thorin Oakenshield, led his people out of exile in Dunland to the Blue Mountains upon the western shores of Middle-earth, he hoped to find some part of the great wealth lost beneath the ruined stone of the dwarves’ ancient kingdoms. Instead, he found iron . . . lots of iron. Durin’s Folk maintained a form of wealth in Thorin’s Hall, but it did not begin to rival that which they lost to Smaug the Golden in the Lonely Mountain.

Some few dwarves believed that precious metals might still be found in the Blue Mountains, though none had been uncovered in the years since the settling of Thorin’s Hall. Among these was Flosi. The old prospector spent many of his long years seeking gold and silver in the mountains of his home, but to no avail. As soon as he found ore that he thought might lead to a vein of gold, though, he lost his tools in the mines of the Winterheight.