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I was given this old 1911 holster it also came with a old pistol belt. My question is this my grandson wants to use it for playing Army in the backyard . Is it a collectors item or should it be ok for him to have.
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WWII holsters in that good a shape are getting rare. There were a bunch of small and large contractors who supplied holsters to the war effort. Some are rare. Leather US military holsters have increasing collector interest and value. Don't know your particular maker, but there are books with such info.
 

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I was given this old 1911 holster it also came with a old pistol belt. My question is this my grandson wants to use it for playing Army in the backyard . Is it a collectors item or should it be ok for him to have. View attachment 658944 View attachment 658945
It is WWII or older, and getting pretty collectible. I’d save it for him, for the time being, and give it to him with a nice USGI .45 when he’s old enough to appreciate it!
 

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Don’t let your grandson play with it, give it to him when he is 18 or so, when he can appreciate it. I had an old Luger that my Grandfather brought back from WWI. It had been hit by a bullet and was not functional. I played war and cops and robbers with it when I was 6-8, lost it when playing. I’d pay a couple thousand to get it back now.
 

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It's very rare to see a WW1-vintage holster in that good of condition nowadays. Most have rotted or started falling apart by now.
 

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Your holster is actually a WWI vintage M1916 manufactured by Keyston Bros. in San Francisco, This is a scarce maker, so the holster has considerable collector value.
Just a fun fact, Keyston Brothers is still in business in SF. Upholstery Fabric Supplier - Keyston Bros. : Keyston Bros. Pretty cool.

On a more serious note OP, make sure you treat that leather a couple of times a year. Try Chelsea, Dubbin Leatherfood from Caswell and Co. in the UK. I use it on sword grips, works well and not sticky. A little goes a long way.
 
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