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Luther clearly thought all relics were ridiculous nonsense and evidences of a very degraded sense of spiriituality.
“It is claimed that the head of St. John the Baptist is in Rome, although all histories show that the Saracens opened John’s grave and burned everything to powder. Yet the pope is not ashamed of his lies. So with reference to other relics like the nails and the wood of the cross—they are the greatest lies.” (Martin Luther's Works, Vol 54.131)
Furthermore, at the time of Luther, the superstition surrounding relics seems to have really been highly imaginative that only an unspiritual mind could ever conjure:
“Certain men have impudently boasted that they possess a feather from the holy angel St. Michael. The bishop of Mainz claims to have a flame from the bush of Moses. So in Compostella the banner is exhibited that Christ had in hell, and likewise the crown of thorns, the nails, etc., and also some of Mary’s milk.” (Martin Luther's Works, Vol 54.247)