Effect: A solid wooden pencil is shown and tapped on a table to prove it is real. A square sheet of newspaper is shown on both sides and folded into the shape of a cone. The pencil is dropped into the cone, and again tapped on the table while inside the cone, to demonstrate that it is still there.
Suddenly the paper is then crumbled, and opened up. Both sides of the paper are shown proving the pencil has indeed completely vanished!