Can't say for sure, but it's not a coin. Looks like possibly part of a bracelet or other decorative piece.
I think they call that a repousse, when someone takes a coin and presses a super high relief design into it. Someone made a jewelry piece out of a dime.
That is exactly what it is.. I was looking for the correct word Pop out image coin - Repousse style @lordmarcovan - would like to see this one.
Nice sleuthing, @spirityoda. That's exactly what it is. How interesting. I'd never seen a repoussé popout Mercury dime before, either. That fad was en vogue earlier, around the turn of the century, in the era of the Barber coins. Here is an example I had on a 1900 Barber dime. Too bad the example in the original post is in such rough shape. It would be a fairly desirable piece of exonumia if the condition were better. It's still interesting, even as it is.
Thank you all for the responses. I believe SpiritYoda is correct seeing how we found it among my wife's grandmother's costume jewelry. My next question is is it worth anything other than silver scrap?
Realistically, i wouldn't think so, due to the condition, unfortunately. Too bad, because it's a pretty neat item, and a bit uncommon.
To bad it got so beat up. That would have been a very cool piece in better shape. I would have loved to add it to my collection of pop out coins. I have not seen it before. Looks like your grandmother liked it so much that she wore it a lot to get that much wear/damage to it.