Magische Spange

The Master's talisman is...the clasp on his cloak. The clasp is a magical item that can be used to store magic. It's used as a back-up source for creating ice spells, so he doesn't use it often; only when he runs out of magic himself. When it's not being used, it's continually absorbing magic from its surroundings. As for why he has it, well it's useful. It was crafted sometime before he made his home in the ice caves, so it's stored up a lot of magic.

Since the clasp is only for storing magic, the badges go on the cloak.