I have made these using all types of sock yarn.

Pattern Dice/notions drawstring bag

Cast on 72 st on a 2 mm – 2.5 mm (depending on gauge / tension) circular needle, magic-loop-style, using Judy’s Magic Cast On or similar.
Knit around and keep knitting (stocking/stockinette stitch) in the round until the bag is roughly square (i.e. as tall as the cast-on edge is wide).
Knit the holes for the draw-thread: (K2, YO, SSK, K2) for one round.
Knit a few more rows (8-10) in stocking stitch (i.e. K all round) and cast off loosely.
Make a 3 st i-cord about 3.5 times as long as the bag is wide using 2 mm needles and thread it around the holes.
Fill the bag with dice (or notions) and tie the drawstring in a bow!

Creative Commons Licence
This is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 Unported License.