It was in with Grandma's jewelry and my first thought was "lipstick holder" but it's way too wide for one tube and way too skinny for more than one.
So what does that leave? It's only an inch deep, which rules out holding most things I can think of. It's monogrammed, and her initials are unusual enough that I'm sure it was originally hers.
This post is linked to Thrifter Share, Ivy & Elephants, Knick of Time, Thriftasaurus,