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Help! Do you know what this is?

I have inherited some vintage treasures from my Grandma's sewing box.
Vintage treasures from my Grandma's sewing box
An old thread box, and many wonderful buttons, many still on their original cards.
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But then there is this mysterious (to me!) tool. It is about 3.5 inches long.
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If anyone knows what this tool is and how it is used, I would love to know!