Loge, the god of fire, enters. Wotan is cross with Loge for not having found something else to pay the giants with. Loge says he has been all over the world looking for something. He tells everyone that the gold from the Rhine has magic power, and how Alberich renounced love so that he could steal it from the Rhinemaidens. He tells them that a ring can be made from the gold, and that whoever has the ring will have power over all the world. The giants hear what Loge is saying and decide that they want the gold instead of Freia. They take Freia as hostage, saying that they will be back later to collect the gold. If they do not get it then they will keep Freia forever.