Remember Germany was severely depleted as a nation c 45 onwards.

Embroidery was a major industry before during and after the war , however like all industrial businesses the government had ceased and therefore no money coming in.

Everything was cheap and in the case of insignia , fabric , thread , bullion you name it was cheap and the Germans had loads of it.

GI's would go to local business or seamstress (if not destroyed) and or they would go to GI's and as a source of income make all types of insignia.

Bullion like any other material was dirt cheap and they had plenty of it.

Consider this Roy Paris Catalogue (Texas c45) was selling US theatre made Bullion on felt / gabardine material Army Air force SSI for $2.25-$3.50, Germany at the same time 10c-30c per patch or cigarettes , chocolate or what you could trade for.

Also you could get them made up and distributed faster than the US supply system and have them custom made , which is why we have so many theatre made variations.

Again the Germans had schiffli embroidery machines , jacquard looms etc and the Germans by late war war attention to detail never wavered.