Does this look like this Starfire headstock is cracked?

hsiahhh

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No. That is the headstock overlay lifting. Pretty common. The headstock overlay is composed of two pieces. The black piece on top and a layer below. The layer below is coming unglued as the black part of the headstock overlay shrinks on some older Guilds.
 
Correct, not an issue but normal due to the shrinking black celluloid overlay.
One word of warning, never heat the black overlay as they shrink faster you can look. Applies also to not leave the headstock in the sun. I would ask a good luthier to use some cold very thin glue (like extra thin superglue) and clamp it for a day and done. Again, the black is celluloid and the layer below a kind of wood fiber/paper fiber material which is glued to the mahogany headstock.

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Ralf
 
I’ve never understood why Guild used this headstock overlay design. Bound to cause problems.

Was it cheaper than using a true wood/MOP inlay?
 
I’ve never understood why Guild used this headstock overlay design. Bound to cause problems.

Was it cheaper than using a true wood/MOP inlay?
Not just Guild. I don't think that wood overlays became common until relatively recently :unsure: I think that, generally, budget models tended to have a decal over natural wood or paint and more premium models used an inlaid celluloid overlay. Better to inlay the MOP into an overlay than directly into the headstock, as any errors would likely result in scrapping the neck and also the "wings" tend to contrast with the central neck wood.
 
I think you can reasonably view it as something cosmetic rather than structural.
 
That said, best get it glued back as well as possible. I don't think this overlay piece would be considered structural by the manufacturers, but that doesn't mean that it doesn't make any structural contribution.
 
Should I be worried about the crack?
I would get it glued to prevent further separation.

Or do it yourself if you feel confident. It's not difficult:
-Make sure the separation will close with pressure. You can use epoxy glue if you prefer.
-Remove the tuners adjacent to the repair.
-Make sure you have a wood block to fit the back and front of the headstock at the repair.
-Tape off near the crack/separation (glue will damage the guitar finish if it bleeds)
-Have a clamp and some wax paper handy and ready to use. You dont need a big clamp. Hard to handle.
-Using some Medium to Thick CA glue, "5 second glue". (Hobby shop, 'Bob Smith Industries' is good quality, but most will work) It wicks into the crack very well.
-Put in the glue, quickly lay wax paper, backed by wood blocks, and clamp it fast!
(this is why you need everything cut and adjusted ready to go!)
JUst take your time preparing and use whatever feels best for the job.
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