Why gold is called Ægir's fire: at Ægir's feast gold lights up the hall like fire in place of a torch. Here Loki quarrels and kills the servant Fimafengr (the setting of Lokasenna). The chapter also explains the skalds' method of extending a kenning (nýgervingar) — the sea's fire becomes the fire of rivers and waters.
Fyrir hví er gull kallat eldr Ægis? Þessi saga er til þess, er fyrr er getit, at Ægir sótti heimboð til Ásgarðs, en er hann var búinn til heimferðar, þá bauð hann til sín Óðni ok öllum ásum á þriggja mánaða fresti. Til þeirar ferðar varð fyrst Óðinn ok Njörðr, Freyr, Týr, Bragi, Viðarr, Loki, svá ok ásynjur Frigg, Freyja, Gefjun, Skaði, Iðunn, Sif. Þórr var eigi þar. Hann var farinn í austrveg at drepa troll. En er goðin höfðu setzt í sæti, þá lét Ægir bera inn á hallargólf lýsigull, þat er birti ok lýsti höllina sem eldr, ok þat var þar haft fyrir ljós at hans veizlu, sem í Valhöllu váru sverðin fyrir eld. Þá sennti Loki þar við öll goð ok drap þræl Ægis, þann er Fimafengr hét. Annarr þræll hans er nefndr Eldir. Rán er nefnd kona hans, en níu dætr þeira, svá sem fyrr er ritat. At þeiri veizlu vannst allt sjálft, bæði vist ok öl ok öll reiða, er til veizlunnar þurfti. Þá urðu æsir þessir varir, at Rán átti net þat, er hon veiddi í menn alla, þá er á sæ kómu.
Why is gold called Ægir's fire? This story is the source of it, as told before, that Ægir came to a feast at Ásgarðr; and when he was ready to journey home, he invited Óðinn and all the Æsir to himself at a term of three months. On that journey there came first Óðinn and Njörðr, Freyr, Týr, Bragi, Víðarr, Loki, and likewise the goddesses Frigg, Freyja, Gefjun, Skaði, Iðunn, Sif. Þórr was not there; he had gone into the eastern regions to kill trolls. And when the gods had taken their seats, Ægir had shining gold carried onto the hall floor, which lit up the hall like fire, and it was used there for light at his feast, as in Valhöll the swords were used for fire. Then Loki quarrelled there with all the gods and killed Ægir's servant named Fimafengr. Another servant of his is named Eldir. Rán is named as his wife, and their nine daughters, as was written before. At that feast everything served itself, both food and ale and all the gear needed for the feast. Then the Æsir became aware that Rán had that net in which she caught all men who came out onto the sea.
Nú er þessi saga til þess, hvaðan af þat er, at gull er kallat eldr eða ljós eða birti Ægis, Ránar eða Ægis dætra. Ok af þeim kenningum er nú svá sett, at gull er kallat eldr sævar ok allra hans heita, svá sem Ægir eða Rán eigu heiti við sæinn, ok þaðan af er nú gull kallat eldr vatna eða á ok allra árheita. En þessi heiti hafa svá farit sem önnur ok kenningar, at in yngri skáld hafa ort eftir dæmum inna gömlu skálda, svá sem stóð í þeira kvæðum, en sett síðan út í hálfur þær, er þeim þóttu líkar við þat, er fyrr var ort, svá sem vatnit er sænum, en áin vatninu, en bekkr ánni. Því er þat kallat nýgervingar allt, er út er sett heiti lengra en fyrr finnst, ok þykkir þat vel allt, er með líkendum ferr ok eðli. Svá kvað Bragi skáld:
Now this story is the source of why gold is called the fire or light or brightness of Ægir, of Rán, or of Ægir's daughters. And from these kennings it is now established that gold is called the fire of the sea and of all its names, since Ægir and Rán have names for the sea; and thence gold is now called the fire of waters or rivers and of all river-names. But these terms have gone the way of others and of kennings, that the younger skalds have composed after the models of the old skalds, as it stood in their poems, but then extended into those categories that seemed to them like what was composed before — as water is to the sea, the river to the water, and the brook to the river. Therefore all extension of a term further than is found before is called nýgervingar [fresh-coining], and all is thought good that proceeds by likeness and nature. Thus spoke the skald Bragi:
Skaldic quotations
Bragi inn gamli (guld = eldr ölna bekks, fiskbäckens eld)
Eld of þák af jöfri ölna bekks við drykkju; þat gaf Fjölnis fjalla, með fulli mér stillir.
I received from the prince the fire of the fishes' brook [gold] over the drinking; the ruler gave me that, with a full cup.