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From Terraria Wiki
The Silver Hammer is an early game hammer, being stronger than the Iron Hammer, but weaker than the Gold Hammer. It has an alternate ore version, the Tungsten Hammer, which is slightly stronger. Like all hammers, it is used to remove background walls and create sloped tiles and half tiles.
Its best Modifier is Legendary. While Light may seem to provide a better speed boost by percentages, after rounding Legendary and Light mine at equal speeds.