Well, since I had already started making the nut and saddle, I went ahead and finished them. I have to agree that buffalo horn is not suitable for guitar nuts, in particular. The softness compared to bone was not a problem, at least initially. Wear might have been a problem later. I found the horn difficult to work with. It seems to consist of fine layers of material, I suppose reflecting the growth pattern of the horn, and these layers easily peel apart. The beautiful finish seems to provoke obsessive polishing. Most importantly, the fine grain/layer structure seems to interact with the windings of the bass strings, especially the 4th 'D' string, to create a horrific creaking/squeaking sound as the string is being tuned and slides across the nut. In the end, it was this that made me give up on the material. Still, it makes a nice decorative overlay for the tie block. See pic.
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