It is more than a hundred years old and I was lucky to find it in a Danish antique shop. 
It is used for winding up a skein and be able to pull the thread out from the center. It has two wooden balls inside the handle that rattle. I believe the purpose was to hear that winding actually was taken place. 
The yarn on the "vindepind" is sock yarn from Hedgehog Fibres and it is such a pleasure to work with.
The sheep is from Spin off and the yarn is from a kit for a scarf. Blogged here
I did not want to work the scarf but I have been longing to try Bohus Knitting for a long time. The needles are 2 mm and the yarn is gorgeous. I read that they get it from a Danish spinning mill. I will definitely do some research.
