A young Bilbo (Martin Freeman) is holding the Sting sword, a sword made by Elves in the ancient days, on this new picture of the Hobbit:

The Hobbit Trailer

(Click on the picture to enlarge.)

That’s the same sword Bilbo will later give to his cousin Frodo Baggins (Elijah Wood) to serve him on his harrowing journey in the Lord of the Rings:

Those Hobbits love their old sword, don’t they?
:)