Sauer developed the model 38H from their earlier semi-automatic handguns. It was necessary to compete with companies such as Mauser and Walther in the commercial market. However, with the outbreak of the war, most pistols went to various German police agencies. These pistols were stamped by those agencies and some can still be found with the holster and additional magazine with which they were distributed. Sauer 38H pistols presented to Nazi officials often featured custom engraving, ivory grips, and often gold inlay as well. For example, in September 2004, the Rock Island Auction Company sold a Sauer 38H, serial number 363573, that belonged to Sepp Dietrich for $43,125.00.