Two mysterious figures lurks about in the small town of Grythyttan. Meanwhile, Staffan finds a gold nugget when he and some school friends explore an abandoned mine.

Staffan hides his gold nugget in what he thinks a safe place. Meanwhile, words spread that Staffan has found gold and suddenly everyone takes an interest in the boy.

Having lost his nugget, Staffan accuses everyone left, right, and center for the theft. Together with Åke and Maria, whom are cleared from suspicion, he plots to track down the real thief. On Saint Lucy's Day they walk from house to house, singing and offering homemade cakes. Whilst everyone keep the house owners busy with their song, one of them snoops around for clues. Åke finds something in the house of butcher Lagerström but runs in to trouble.

By chance, Staffan retrieves his nugget, but something is not right. Staffan heads back to the mine, unaware of a follower.

Two strangers tries to trick Staffan into telling them where the gold mine is. Meanwhile, the school nativity play is about to begin and the entire town takes a seat.