It's an alchemical symbol representing the duality of life and death, light and darkness, spirit and matter, heaven and earth, while the dragon itself represents the very essence of the universe, the manipulation of which is what is variably known as magic, sorcery, alchemy, with the transmutation of base metals into gold simply a metaphor for enlightenment.
If you've seen the movie Excalibur you'll recall Merlin talking to Arthur about the dragon. Arthur thought he meant an actual monster, but in fact he was referring to the force of life in all things.
The twin serpents motif can also be found in various mythologies, such as the winged Caduceus staff of Hermes and Merlin's prophecy of the two dragons.
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In Ferro Veritas.
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