A gnome is a mythological creature and diminutive spirit in Renaissance magic and alchemy, introduced by Paracelsus in the 16th century and widely adopted by authors, including those of modern fantasy
Heinrich Schlitt Gnom mit Zeitung und Tabakspfeife
Demons in the mine. Olaus Magnus, Historia de gentibus septentrionalibus
Bergmännerlein, Wights, and Subterraneans (Unter-Irrdische). Engraving by Thomas Cross, Sr. (fl. 1632–1682), frontispiece to Praetorius (1668) [1666] Anthropodemus Plutonicus.
Silver Thaler coin. Goslar mint. Dated 1587
A goblin is a diminutive, grotesque, and often malevolent humanoid creature prominent in European folklore, typically characterized by its mischievous or demonic nature, small stature, furry or leathe
Gnome
…until the early 19th century, when it is taken up by authors of Romanticist collections of fairy tales and becomes mostly synonymous with the older word goblin. Pope's stated source, the 1670 French satire Comte de Gabalis by Nicolas-Pierre-Henri de Montfaucon de Villars, the abbot of Villars, describes gnomes…
The Princess and the Goblin by George MacDonald, illustrated by Jessie Willcox Smith, 1920