I am sorry but I do'nt see Blue! The colors of the German Flag (Deutsche Flagge) is the same now as it has been seince the mid-1800's which is Black, Red and Gold (Yellow). I see Black instead of Blue on the bracelet and believe that what appears to be White now, was once Gold (Yellow) which has faded due to being in the light. Therefore, I believe it is truly Nazi but for what purpose was it used, I have no idea! Maybe used as bling for special Nazi events!
Frank