By Theordus of Yew 
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The gnomes are an ancient people, having walked the earth since the end of faerie-time.  For as long as written history, their home has been Gnordvar, a settlement in the north-eastern part of the world.  There is little written about the gnomes in ancient texts, as they lived deep underground, never venturing to the surface.  However, recently, this has changed dramatically. 
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Originally situated within the mountain, the settlement was eventually moved to a fertile plateau.  This allowed them to begin practicing agriculture, while still providing access to their ancient mine systems.  For the gnomes could never give up their mines: while all dwarves love gold, gnomes love gems equally as well.  Their tunnels run deep in that mountain and others, snaking to the very centre of the earth where the greatest jewels are found. 
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The migration outside of the mountain greatly opened up gnomish culture.  They were first discovered by passing sailors, who discovered a friendly, diminutive people, eager to learn, share, and trade.  In exchange for gems (and potent gnomish beer, spiced with coriander), Gnordvar received furs, spices, as well as better weapons and armour.  For though the gnomes were excellent miners, they never developed the tradition of smithing in the same way as the dwarves.  The dwarves have always been excellent iron- and steel-smiths, crafting magnificent arms and armour.  The gnomes have always practiced smithing as well, but always in the context of their gems, developing necklaces, rings, and the like.  
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Gnordvar gnomes are deeply intelligent and intuitive, but lack much written history.  As most of their history was spent underground, they lacked paper for writing.  The most important parts of their history are written in an ancient script on marble tablets; the rest has been passed down orally, and the storyteller plays an important role in Gnordvar culture.  Those that travel away from Gnordvar, however, are quick to pick up reading and writing.  Indeed, many of the great wizards of the central lands have been gnomes, probably disproportionately so.  Gnomes especially delight in earth magic.  They cause the ground to split and fissure, call tangles of vines, and summon great hordes of insects.  Privately, some elven scholars have admitted that the best gnomes may be the match of elves in terms of magical talents.  Thankfully for elven egos, gnomes have never shown the same aptitude (nor inclination) for the bow or sword.
