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Oh of course its lying, its the first sign that the ring is taking control of its new bearer. Hobbits just don't normally know how to lie.

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โˆ™ 2011-04-13 06:00:22
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Q: Why doesnt Bilbo tell the dwarves about his ring do you consider this lying?
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Why doesn't Bilbo tell Gandalf and the dwarves about the magic ring?

There were two editions of The Hobbit that were written. Prior to the Lord of the Rings, the ring itself had no history, and so Bilbo actually did reveal that he obtained the ring from Gollum. Later, when the Ring's malevolent history was dabbled into, Tolkein realized Gollum would never give up the ring willingly, and re-wrote the chapter in later editions to reflect that Bilbo more or less stole the ring. Canonically, Bilbo told Gandalf and the Dwarves that it was a prize for winning the riddle game. Gandalf had his suspicions, however, and managed to get the true story from Bilbo much later. The fact that Bilbo would lie about the entire incident struck Gandalf as alarming, since Hobbits weren't prone to such things as lying. One might say that the reason Bilbo lied was due to the effect that the Ring was having on him.

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