Nice family heirloom surprise today

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Great find! It's up to you but personally I'd just clean it and relube. You could replate and change the crystal but you may remove some of the history that makes this watch part of your family. Some of those dings or scratches could be a lasting trace of a day playing with the kids.
What I ended up doing 😀 Here it is after service at my watchmaker. Cleaned, relubed (as they say 😬), new crystal etc. but still the same banged up case, just as the wife’s grandfather left it

 
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What I ended up doing 😀 Here it is after service at my watchmaker. Cleaned, relubed (as they say 😬), new crystal etc. but still the same banged up case, just as the wife’s grandfather left it

Awesome, that's a great sensitive restoration, preserves its character, and it looks great.