gnome

folklore
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gnome, in European folklore, dwarfish, subterranean goblin or earth spirit who guards mines of precious treasures hidden in the earth. He is represented in medieval mythologies as a small, physically deformed (usually hunchbacked) creature resembling a dry, gnarled old man. Gob, the king of the gnome race, ruled with a magic sword and is said to have influenced the melancholic temperament of man.

The term was popularized through works of the 16th-century Swiss alchemist Paracelsus in which gnomes were described as capable of moving through solid earth as fish move through water.