Here's a short video that shows the illusion trick being performed:
Step 1: Materials
1) A rubber band
2) A ring (the heavier the better)
Step 2: Preparing the Illusion
Step 3: Creating the Effect
Step 4: Performing the Illusion
There will now be a considerable length of excess rubber band concealed within both of your fists. You will need to practice the technique of hiding it.
Tilt the rubber band at about a 45-degree angle so that the ring slides down against the thumb and first finger of your left hand. Ever-so-slightly release some of your grip of the rubber band with that hand. This will take just a little bit of practice, but if you keep the angle right and release the rubber band at a constant, slow rate, the ring will "stick" to the rubber band and travel upwards towards your right hand.
Friction force helps it to stay put and not slide back down. Keep your hands and fingers as still as possible! Continue to release your grip until you "run out" of rubber band on that side. By that point, the ring should be at least halfway up to your right hand. To an unsuspecting observer from the other side, it will look like the rubber band never moved but the ring magically defied gravity and traveled upwards. Repeat the same process with your right hand (tilting the rubber band the opposite way). You are now The Lord of the Ring!
This video shows the illusion: