I would say the picture throws up more questions as it answers
The edging was to 100&% done by a non german, the "Shultze" is an americanized spelling of
the common german name Schultze. Same goes for the town Donaueschingen with the missing "c".
If you ask me for my opinion and not for facts, i would say this item is a souvenir of
an US soldier with german ancestors. All 3 towns or villages, Donaueschingen, Bulach
and Diemling, lie within the former US zone of occupation after 1945.
Maybe he was stationed at these places, visited them to find relatives of his german
side of the family, or had a vacation there when he purchased that item on a
black market. Hard to say after such a long time.