You have brought the box of broken keys to Merilos for repair, and she has told you about half of them can be remade. The others are beyond saving.
'It will take some time to repair the keys, and if you would be willing, you might be able to help me with a small matter.
'I gifted a number of fine gems to a traveller who possessed an interest in learning the finer points of jewelsmithy, but he was beset by goblins. Though he escaped with his life, many of the gems were stolen by the creatures. Journey to Goblin-town, which lies within the High Pass, and return to me with a handful of these coveted gems. By that time, I shall likely have finished restoring the keys you have brought to me, and I will be able to return the stolen gems to my unfortunate friend, as well.
'You will not find these gemstones in possession of goblins on the surface, for the creatures that seized these gems likely brought them into Goblin-town, the better to protect them.'
Goblin-town is located in the High Pass, high in the Misty Mountains, north-east of Rivendell.
Merilos has asked you to journey into Goblin-town and reclaim a handful of coveted gems from the goblins there, while she works to repair the keys you found at Delossad.
The jeweller Merilos is at the Spire of Meeting, in Rivendell.
You have acquired a handful of gems from the goblins of Goblin-town, as Merilos asked, and should return them now to her in exchange for the box of keys you left her to repair.