Just to add my two pennorth, for what it's worth ... whatever he's holding must be on a chain or a ribbon or something else which is bunched up in his hand, because it would be difficult to hold that object, using just the tip of his thumb and his knuckle as he is, without dropping it - unless it's on the end of something clutched in his hand.
My guess is a watch on the end of a fob chain, and to me he looks about 12.
One of my ancestors was awarded an education medal for good attendance and punctuality at school, although it was on a clip rather than a chain, but maybe, given his young appearance, it could be something like that?
But it looks more like a watch to me, it looks too thickly bevelled to be a medal in my opinion.
