So the owner says this flag flew over the Bismarck and says on a few remain? I don't think it's possible to identify a flag from where it was originally. Here are some pics. ALSO FOUND A GOSCH FLAG FEW OTHER FLAGS ANY THOUGHTS? 

That would be too small for the Bismark.

But both flags look real.

I agree with Jerry that this Kriegs flag is correct. But that it came from the Bismarck is just a story. What solid proof do they offer? Hearsay most likely. 

The best flag in this group in my opinion is the Occupation Country made flag. The header of the flag that is marked with Helmond (Holland). 

 

Not overly rare but folks looking for Third Reich items manufactured in the occupied countries are somewhat forgotten, and some would say the stampings were fake (unless they study period TR flags). These often slip under the radar and can be purchased for relatively cheap. (Or at least a little less than other TR flags, that is what I have seen with occupation made flags)

 

I would have no issues with adding the Helmond flag to my collection. Looks to be in very good condition.

 

The following are the actual sizes of Kriegsmarine flags from the KM Flaggenbuch. 

 

The flag you posted would have been on E boats and U boats, and it happens to be one of the most popular sizes for display purposes due to the size.  

 

 450x750cm, over 10K, Battleship (Bismarck 50K)
 400x670cm, over 10K tons, B-Cruiser (Prinz Eugen 14K)
 300x500cm, 1500 to 10K tons, Cruiser (Leipzig 8.4K tons)
 200x335cm, 1500 to 10K tons, Destroyer 3K & Cruiser 8K
 150x250cm, 500 to 1500 tons,
 100x170cm, 500 to 1500 tons, DE-Torpedo Boat 900 tons
 80x135cm, up to 500 tons, U-Boats and E-Boats, tugs
 50x85cm, up to 500 tons, U-Boats 900, E-Boats 120t

 

Leigh