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There are several different ways but they amount to the same thing. Take a 1964 or earlier quarter(they were 90% silver then, but later years can be bought in uncirculated silver "proofs" for relatively cheap if you are after a specific date), now rest it on it's edge and either, use the inside of a spoon to repeatedly tap the edge of the coin while you rotate it, or use a small hammer, but be patient. Striking the coin to hard will cause it to warp. Eventually the edge will flatten out with the dates curling around to the inside of the ring.

Now drill a hole in the center of the ring and use either a file or a dremel tool to remove the inside until you reach the desired ring size. Now you just need to sand and buff the ring to the desired finish. Note that silver dollars work better for larger sizes. The attached links show both of the techniques.

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Q: How do you make a ring out of a quarter?
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