Chainsaw wrote:
Thinking about it more, I agree with you on both counts. If the cloak's not handled that way, where would the effect end and why? Why would it hide the crown, but not the wall behind the crown? Why not the earth behind the wall behind the crown? You would potentially get this infinite hiding - there would be like a "nothingness" behind the cloak. If you can't hide an item with the cloak, then you can't do it with the pouch either. Thanks!
I suppose you could argue that if an invisible creatures claims an object (coin, crown, whatever) as a personal possession, it becomes invisible as well. The thin air, walls, and landscape behind the creature couldn't reasonably be claimed as personal possessions, so they would remain unaffected. Nor would other creatures be affected if (for example) draped with an invisible cloak.
However, in fact I agree with you and Dave: only the things actually held or carried by a creature at the time the dweomer takes effect become invisible. Anything picked up later remains visible and appears to float in the air. Reason: this is more hilarious for the DM and inconvenient for the PCs. 