A Red Scale is an item only obtainable in the Gold and Silver Version, and their remakes. It is obtained right after the player captures or defeats the Red Gyarados. There is no other purpose to it other than give it to Mr. Pokémon, a Pokémon collector, in exchange for an Exp. Share an item in which lets a Pokémon earn experience points even without entering a battle.
The scale is also available in Crystal Version, although there is not a remake of the game.
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