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Okay, here's my two cents. I would pick options 1 and 3! That particular knife means very much to you - so much that you have never used it. Keep it as it is and pass it on to your boys. Option 3 is buy and use knives that you can also pass on to your boys and they will appreciate the value knowing that you used the knife as well. Then you have the best of both worlds. No doubt a 40+ year virgin knife in pristine condition would bring a pretty penny. But you will regret that decision the moment you make the deal.
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