In 3113 CL, two elves on a journey through the mountains came across the City of Jewels that was the main residence of most of the gnomes. There, these two elves, Medfeln and Cseson, recognized the star and educated the gnomes in its history and role in the preservation of good in Lataria. Those elves were so persuasive in speech, that they talked the gnomes into giving them the star. At first, the elves used the argument that the star was necessary for the growth of good. The gnomes did not seem to care about the actions of good or evil, and which was the stronger. Before giving up hope, the elves saw the gnomes’ weakness and so used that to persuade them to give them the star. Cseson told them that if the star would be restored, then the gnomes could continue stealing jewels and creating mischief. The gnomes loathed to give up the star, but asked what would happen if they kept the star. Cseson then said that Lataria would turn to evil and soon the gnomes would not even be able to steal and admire their jewels—entertainment they loved dearly. With that last argument, the gnomes gave into their nature and surrendered the star to the elves.
The god of mirth, Gnobezge, had wanted a creation of his own since Tonnelus and Dustanan had their own creations. He took different jewels and from them he created the gnomes: short, slender, and quick beings with high pitched voices. Gnobezge shared his love for mirth and merriment with the gnomes, hoping that they would take after him. As with other creations that had already been created who followed their own pursuits and not necessarily those of the god that made them, the gnomes did likewise—using their fun, carefree spirits in another way that was entirely unpredictable. They were attracted to colorful gems since they had come from them. However, retrieving them without paying money or exchanging something else valuable for them was a problem, one which they overcame by stealing. These gnomes were so quick and cunning and jovial about their thieving endeavors, that in no time at all they had become infamous thieves among the other races, especially the dwarves.
After years of putting up with the stealing gnomes the dwarves decided that they would walk the short road underneath the mountain to the Jewel City. The dwarves and gnomes fought in their own ways according to their respective races. A lull in the fighting came when the dwarves took back all their belongings of jewelry and precious stones, placing them in a cave with only one entrance where a dragon stood guard. And so the gnomes repeated the slogan that they did not steal any of the items but that the stolen items had actually belonged to them all along. Over the years many gnomes tried to steal past the dragon and confiscate its treasure, but few of them succeeded.