For comparison's sake - the regularly awarded Combined Pilot's and Observer's Badge

Gold death's head ring and cigarette case, presented by Adolf Hitler to SS-Sturmbannführer Otto Skorzeny, following his dramatic rescue of Italian leader Benito Mussolini
The case was made at the Allach works at the Auschwitz concentration camp and signed by designer Benno von Arendt, the President of the Fraternity of German Artists