There are several Theories about the German Dwarfs, I think they were simply the Ghosts of the Earth worshipped by our German ancestors. As you see in the Sagas they often are guarding Treasuries , like Gold, Silver or smitten Weapons. Their Treasures are often often cursed . Modern Examples are Oil or Uran who are both dangerous and Important .
The Racial Theories i know are either saying that the Dwarfes are Memorys of small buildt Southern workers who earned Ore in Alpine Mines and possesed a great Skill in Metall-Works (see Tyrfing Saga ) or like Paul Herrmann tries to prove in his "German Mythology" that real Dwarfpeople lived in ancient German Woods, he is proving his Theorie with Antropology, but in the new Press of his Book the Article is excluded, does anyone have it ?
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Gesell dich einem besseren zu,
lass mit ihm deine Kräfte ringen.
Den wer nicht besser ist als du,
der kann dich auch nicht weiter bringen.
Goethe
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