Looks bad to me....
It is a fine original badge by Karl Wurster (M1/34).
Dont know... never heard of them, im used to them always having gold lettering.
Keep in mind that these were manufactured in two basic types: pre- and early-war, which were enamel over (usually) brass, and mid- and late-war examples, which were painted zinc. The enamel ones are naturally of a much higher quality.
Well, I need to read up a bit more... sorry for that false acusation my friend.