This is a great story:
http://www.radio.cz/en/article/74123There is a gallery showing of gnomes at the Museum of Central Bohemia in Roztoky, just north of Prague.

"We didn't want to take a dry, art-historical approach, although we do also offer examples of some really early gnomes. We have two from the late Renaissance period, and there are also many rare gnomes from the Maresch ceramics factory that used to be in Usti nad Labem in North Bohemia and was the first ever to create mass-produced gnomes. At the beginning of the last century it was exporting them all over Europe."
The oldest of the gnomes go back to the late Renaissance time. I would be interested to know what their symbolism was.
"They are caricatures of a noble woman and a peasant. They were made by the well known sculptor Matyas Braun and they parodied various human qualities, such virtue and vice."
Exbition news:
http://www.muzeum-roztoky.cz/