Dwarf
Dwarfs are almost always associated with unconscious creativity; the creative impulse or playful inspiration; smiths or helpers in myths and folklore. (Cf. Giant.) They live in the underworld as unconscious impulses or creative forces, a humanized form of the serpent; at times, they express “the underground self” (Visions, p. 277); they possess a spiritual or “nature quality,” which in dwarf symbolism suggests a certain dissociation of content.
“The dwarf is always a subordinate creative force in the unconscious that can either be helpful and bring things up from the unconscious or can steal things.” (Visions, p. 626.)
Treasures
As creative little helpers, dwarfs are resourceful and are thought to possess treasures of various kinds, for example, in Norse mythology and at least in folk tales from Northern Europe.
Children
Children in dreams sometimes have a “dwarfish” quality (small creative individuals). Children and dwarfs can express the homunculus – “the little helper” that appears in alchemical writings and other expressions of the unconscious's imagery.
In folklore, dwarfs play the role of household guardians and can be very helpful – or not, depending on how humans behave.
The “dwarf” as a psychological impulse provides “small” inspirations, barely noticeable ideas that are easy to overlook – something that irritates him, making one irritated with oneself. They are small but important, summarizes von Franz (Creation Myths, pp. 278-280).
Dwarfs, like children, have playful traits, but creativity also possesses these qualities. The playful “little people” are an expression of creativity, and truly creative individuals are playful and perhaps a little childlike. Playfulness and creativity, of course, go hand in hand, and along with mischief and childish impulses, they express a trickster quality. However, too much of these qualities, which hinder one from achieving minor and major goals, are signs of “destructive infantilism” according to von Franz (Creation Myths, p. 286).
Head and Feet
Like gnomes, dwarfs almost always wear hats, resembling the Phrygian variant of the Cabeiri. (Cf. Headger.) Another popular model they share with wizards is the pointed hat – an energy that shoots up from the unconscious toward the conscious. The underground dwarf, in this respect, is not something that needs to be dug up but rather something that rises to the surface. It is a matter of noticing and valuing it.
Phallic Aspects and the Great Mother
Dwarfs (dactyls, Cabeiri, etc.) possess a phallic aspect, and the phallus is also a symbol of creation and creativity.
These small phallic figures associated with the underworld are linked to the Great Mother. While space does not allow for elaboration, we can recall the relationship between Demeter and the Cabeiri, for example.
Wisdom and Guidance
Dwarfs or other small figures (like a boy) can share certain qualities with “the spiritual principle” (see Spirit) and “the wise old man” (see Old Man). It is not uncommon in tales for the hero or heroine to encounter the wise old man in the form of a small man, such as a little forest spirit.
Originally, dwarfs were teachers who imparted various arts and crafts; thus, the symbol carries an educational quality. The Cabeiri, in particular, were characterized by their grotesque appearance, exemplifying that a certain distortion is inherent to cthonic wisdom.
Spirits of Objects
According to tradition, all places and objects have their own spirits, especially those that are important to us; these spirits are often represented by dwarfs. This ties into creativity, playfulness, and trickster qualities.
Trickster
In ancient times, when noblemen kept dwarfs, these dwarfs were believed to possess special abilities that allowed them to see and hear everything. They had unique privileges that enabled them to say things that others could not and do things that would be unacceptable for others. They were associated with supernatural abilities and possessed a certain trickster quality – they were truth-tellers and keepers of secrets.