Pin holes are acceptable and almost unavoidable in pennant collecting. As long as the holes aren't elongated or so numerous at the tip that it has practically disintegrated they are ok. There are pennants without them, but I would not pass up an otherwise nice pennant due to some small pin holes. Stains (large or obvious) and trimmed pennants are my personal no-no's with regard to pennant purchases.
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Always buying baseball trophies, figural pieces, glassware, as well as Cubs and Tigers pinbacks and pennants.
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