1 Create a perfect circle with the Ellipse tool holding down the Shift key. Make a rectangle at the top for the stem of the ornament.
2 Unite the two pieces and then click on Expand.
3 Duplicate the ornament layer in the Appearance palette.
With the Appearance palette, click on the first fill layer and then choose gradient. Apply a circular gradient to the ornament.
4 Using the Place command place a photo or a piece of artwork on the work area. Send it back one level.
5 Choose both the top path and the placed picture and press Control+7 to make a clipping mask.
6 Choose the image layer and turn it to the Multiply mode.
7 Apply an Inner Glow to the image layer.
8 Lock the two lower layers. Make a medium rectangle on a new sublayer.
9 Make one Rounded Rectangle, Alt+drag to duplicate and then Control+D to continue duplication.
10 In the Appearance palette, choose the group. Apply a 2 pt. stroke and then make the fill transparent. Duplicate the Stroke layer and apply a .5 pt stroke. Make a circular loop on the same layer to achieve the same look as the silver piece.
11 Draw a hook using the Pen tool and adjust the point with the Direct Selection tool.
Now the ornament is complete.
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