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AlanBeing Jewish, of course, I've seen this issue come up on several occasions. It's a very controversial issue & I'm not sure anyone has a good solution.
Some collectors of Nazi items are Jewish people who want to show their children & grandchildren what happened to the Jewish people. I recall a rabbi saying he could understand wanting to collect the items to represent what the Jewish people had to overcome. But he said it's not something he would do. He said he wondered why people would want the negative energy of Nazi memorabilia in their home. I think we need to be careful about promoting these negative energies.
I think that the best place for Nazi items might be Holocaust museums, which gives the possibility for something positive to come out of it.
Alan
Happy Pesach