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Hello:
I have this silver pendant that has this inset carnelian cabochon in it as well as 4 smaller stones on the edges. It is unmarked but tests positive for being silver. It measures approx. 1 1/2" long and 1" square and is hinged so that it has a compartment in it. It appears to be Middle Eastern but beyond that I do not know what it was used for. Any info would be greatly appreciated. Thank You.

HI,
I think it could be Gau box used by Tibetan Buddhists to hold a picture of their favorite Deity or Lama, a folded up scroll of Sacred Mantras, special herbs or Sacred Relics.
Islamic scroll pendants are usually elongated cylindrical boxes for Quran texts.
Google for images of Gau box
Regards