[citation needed] In 1491, silver deposits were discovered in the area, and Annaberg soon developed under the patronage of George, Duke of Saxony and Barbara Jagiellon.

[3] Barbara Uthmann introduced braid and lace-making to the town in 1561 and the craft was further developed in the 1590s by Belgian refugees fleeing the policies of Fernando Álvarez de Toledo, 3rd Duke of Alba, Spain's governor over the Low Countries.

[4] The industry was further developed in the 19th century, when Annaberg[5] and Buchholz[6] were connected by rail to Chemnitz and to each other, with both settlements having specialized schools for lace-making.

Annaberg is well known for its historical old town and market square; the house Markt 2 shows the coat of arms of the family Apian-Bennewitz.

In addition to the actual hammer mill itself, there is an exhibition of forged items and the former master hammersmith's house (Hammerherrenhaus).