Here is a quick cute gift pouch. I made mine the perfect size for a piece of jewelry, or a gift card. You can make yours larger by increasing the knit rows in the pattern!
Sample Knit on: Adult Sock Fine Gauge D.A. Accents loom
Yarn used in this sample: Esprit Print Color 9061 from Elann – This yarn is stretchy, it is 98.3% cotton and 1.7% elastic. I used two strands throughout.
Cast on all 40 pegs. You will be knitting in the round.
Row 1 Knit
Row 2-3 Purl
Row 4-6 Knit
Row 7 *K3 (YO, K1)* repeat till you finish the row.
Row 8-10 Knit
Row 11 – 12 Purl
Row 13 – ? Knit to desired size.
I made mine 3 inches from the lip of the bag. Then bind off and turn inside out and stitch up the bottom.
String two strands with a needle through the holes made by the Yarn Overs, and tie a pretty bow with them!
A fast, cute little bag! I’m sure I’ll be making many of these for the holiday gift giving season!
knit Mama knit! 
Thanks for sharing this. I am new to loom knitting and I feel like I can handle this pattern, which I think is really cute, by the way. My hubbie’s family always has a gift exchange for Christmas, and several always request a gift card of some sort. This will be a neat way to present it and still feel like I gave them something homemade and from my heart.
crochetjo
these are all great indeed!
thanks for sharing!