John, I am in the leave it alone camp. you would be spending money to make the gun worth less that it is before being done. It would look pretty, but would suck all the originality out of that mark, and cast doubt on the mark itself. Their is a small group of us that collect personalized lugers that would be perfectly fine with that scar as is. If you wish to dump this one to look for one that is not ground/stamped/ defaced, contact me, as I like it as is and would make you an offer.
By the way, nice luger, and thanks for sharing with us. John
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