I looked at this portrait and it really does look like the Reich's Master of the Hunt and always hunting for more titles.
During this period I'm sure the "authorized" proper wear was on the hat. No other authorized way that I'm aware of during this period. It's always a possibility that some didn't adhere to the proper wearing of this badge. Although it does makes sense to wear it on the jacket. Today as Wotan stated it's different. Also, when these badges were lost for whatever reason lol, the badge was retired, meaning the number was discontinued.
