The Vatican Observatory (Specola Vaticana) is an astronomical research and educational institution supported by the Holy See.
The predecessor of the Vatican Observatory was Specola of Rome (College Observatory). In 1870, with the capture of Rome, the College Observatory fell into the hands of the Italian Government. After death of its director Angelo Secchi in 1878, though, the Observatory was nationalized by the Italian government and renamed the Regio Osservatorio al Collegio Romano ("Royal Observatory at the Roman College"), putting an end to astronomical research in the Vatican.
In 1891, Pope Leo XIII issued a Motu Proprio re-founding the Specola Vaticana (Vatican Observatory) and a new observatory was built on the walls at the edge of the Vatican. For this occasion a silver medal was issued. On the obverse of the 43.5 mm diameter and 37 gram medal the building of the observatory with its dome is visible on the center right. However more dominating the scene the standing Urania, the muse of astronomy holding a star-globe in her hand. She is leaning on a column that has a figure and text ("ANNO RESTITVTO MDLXXXII") that refers to the calendar reform that was promulgated in 1582. Actually the first observatory in the Holy See was established in 1578 and later Jesuit astronomers and mathematicians were called on to study the scientific data and implications involved in the reform of the calendar. A beautiful astrolabe is visible at the feet of Urania. Legend around is: "REI · ASTRONOM · HONOR · IN · VAT · INSTAVRATVS · ET · AVCTVS", i. e. established and expanded for respecting astronomical work in Vatican. Below is the date "MDCCCXCI", i. e. 1891.
The reverse shows the left facing portrait of the re-founder, Pope Leo XIII in his rich ornamented investiture. In legend is: "LEO · XIII · PONT · MAX · AN · XIV ·".
There is another medal depicting the observatory. Let me cite here the words of blogger 'brotherguy' (see box) about this second medal and its historical background.
...Where Leo XIII re-established the Vatican Observatory, it was under Pope Pius X that it finally came into its own.
from brotherguy: Happy Solstice, from the Pope!
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Now the sitting muse of astronomy points at the observatory, while at this time a star-globe resides at her legs. The silver medal has a diameter of 43.8 mm and weight 36.5 gram. Legend is: "AMPLIOREM · IN · HORTIS · VAT · MIHI · SEDEM · ADORNAVIT", ("He has prepared for me a more ample seat in the Vatican Gardens"). Below: "A.MDCCCCXI", i. e. in the year 1911.
The reverse shows the right facing portrait of Pope Pius X again in a rich ornamented investiture. In legend is: "PIVS · X · PONT · MAX · AN · VIII".