After dreaming up a number of different ideas for a jewelry holder that would be both stylish and capable of holding at least 10 lbs, I went to the thrift store for a scouting trip.

At the hardware store, I found these molding strips. You could just use a thin plywood, but the molding had a nice beveled edge. I measured the inside of the frame, and cut the strips accordingly. (Did you know they have stations with saws where you can cut the wood yourself in the store! Awesome!)

Once the frame and molding strips were painted blue, I measured and cut my wrapping paper to fit inside the frame. I also decided what heights to put the molding strips at and marked the spots on the picture with a pencil. I decided (after some epic failing) to cut the paper into 3 pieces and put each in separately. There was some slight gaping between the existing picture and the frame under which I was able to slide the wrapping paper for a more secure fit and total coverage.
I decided to use an acid-free double stick tape (after staring at the adhesive aisle for about 20 minutes). Because wrapping paper is so thin, I knew that any sort of glue would result in wrinkles in the paper. Placing some tape on the picture, I put the wrapping on in strips, tucking the edges under the frame. I used the pencil markers to make sure the seams in the paper were hidden under the molding.


The hooks I found at the hardware store were simple 5/8" hooks, which was appropriate for the width of the wood. I screwed each one into the holes in the wood. (Please note: this is much easier to do with pliers, which we did not have and ended up with red, aching fingers.)
Once all of the hooks were good to go, I glued the strips to the edges of the frame with liquid nails. You'll definitely want to use a similar product for this step to avoid the strips crashing down and breaking your project. Let the project sit and dry for at least an hour, and definitely over night before hanging anything from it. Once everything has set, mount it on your wall and fill it with your loveliest jewelry!

To make this project at home, you'll need:
Old picture frame
Strips of plywood/molding cut to fit just inside the frame
Hooks
Paper for the background
Acrylic paint
Double stick tape
Liquid nails
Nail/Hammer
Pliers
You could try making this with a different frame shapes and color schemes. You could also opt to paint the background, rather than use patterned paper. Make sure to send a picture my way if you make your own!
Happy Crafting!