I think that what you have is not a medal, but a Turkish "kurush" coin, modified to be worn as a jewel, something that was a pretty common practice in the Balkans.
I thought that the grey area between the rim and the suspension ring seen on the second photo was some kind of solder. Maybe I am wrong, but the design is identical to the one of the early 20th century kurush coins.
You are perfectly correct Stray dog however the original coin was gold so what we are looking at is a copy of the gold coin used as decoration.
You can still buy theses though what I have seen what is popular today are copies of the silver florin and UK sovereign for folk costumes wedding headdress etc.
I think that these existed in silver and bronze, too, according to their monetary value. So maybe this could be an original lower value currency? Coins worn as jewelry were indicative of the person's wealth (actually women were wearing these, so it was indicative of their fathers' or husbands' wealth), so gold coins could be afforded to be turned to jewelry by richer people, with lower value bronze and silver coins being worn by the poorer ones.
The most usual practice was drilling a hole directly on the coin, but a skilled person could attach a suspension ring. The more skilled he was, the less visible the solder would be.
Byterock, correct me if you have any info on this and I am wrong with my bronze, silver and gold coin theory, according to the value!
Had a search about copper or bronze examples and it looks like byterock is right. There are also modern cast copies of these out there, so maybe a coin collector forum would be helpful!
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