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On the pirates I redeemed it on (my level 3 and 4) I kept it. I did not redeem it on my level 50 and 32, as by then they have outgrown the sword. Not to mention that those two pirates have almost full inventories. I suppose its a sword worth keeping if you are under level 25 or so. After that its probably not worth the inventory slot unless you are keeping it for collection sake.
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