The chips were probably current at the time they were drilled and mounted on the bracelet.

Over 100 years ago, people used to do similar things to current silver coins, that would be considered foolish today. Here is an egraved silver coins love token bracelet that was very popular in the middle to late 1800's. Some of these coins today would be worth hundreds of dollars each in their original state.

SILVER LOVE TOKEN 12-COIN BRACELET SEATED DIME
Silver Love Token Bracelet, coin silver with 12 U.S. Coins, all Seated Dimes & Half Dimes, and 1 Capped Bust Half Dime. The reverse of each coin has been flattened and initialed (the obverse on one seated dime). Initials are as follows: SBD, CWK, YAH, JRK, MLT, SAG, LHE, WNP, WMG, SJ, AW, PSC.