This is a cute way to hide and wrap small gifts.

Materials Needed
Ball of yarn, size desired and any color
Small gifts or trinkets such as rings, earrings, plastic bugs, whistles, coins, balloons, miniatures, party favors and more!
Someone to give this great gift too!
Directions
Unravel your yarn to desired length.
Begin tying on your little surprises.
Re-ravel the yarn. tie on a bow and give as a gift.

source: http://www.craftsnhobbies.com

I saw this that's similar, but done with crepe paper vs yarn:
http://www.hgtv.com/HGTV/project/0,1158,CRHO_project_2966,00.html

:bump: Good holiday gift idea.

http://www.secondhandcrafts.com/may00/ball.html

http://www.secondhandcrafts.com/may00/images/trinket_ball.jpg

Those are so cute. Thanks Sara.