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Nauglamir 

Necklace given by the dwarves to Finrod in Tolkien's book, The Silmarillion. It was the most beautiful of all the treasures of Nargothrond. The name means "dwarf-jewel" in elvish.

It was kept by Glaurung after the sack of Nargothrond, and later retrieved from the ruins by Hurin, who fought and slew Mim at the gates. He then gave it to Elwe of Doriath for unspecified reasons. Elwe hired dwarves to have the Silmaril he had been given by Beren set into it, but the dwarves, overwhelmed with the beauty of the item, demanded it back, Silmaril and all. Elwe refused and they slew him, setting off a war in which Menegroth was sacked, Doriath destroyed and the dwarves mostly slaughtered.

It was retrieved by Elwing and carried into the west along with the Silmaril.
The name comes from Naugrim, which means dwarves in Sindarin.
Nauglamir by Andy May 23, 2004
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