What to do with silver chain

[Apostolos]

As title asks: I got one panning (still new to this) so it does not give much info in the block and items section of the survival guide. I just says it can contain silver bits, but there is no mention of HOW to actually get said bits from the item.

[Venusgate]

If it says "smelt" for silver bits, it typically means in a bloomery.

If it doesn't, it means chisel in the crafting grid.

 

Though I don't know the specific answer for silver chain.

[ifoz]

I'm pretty sure you can craft it with a chisel to break it down into silver bits.
Other than that it doesn't do anything, it's just a piece of decorative jewellery you can wear.