The Republic of Palau is an island country in the western Pacific, in free association with the United States. In one way or another, the country has been under US administration since it was established, and has never had its own separate currency - it has always used the US Dollar. However, Palau allows some foreign mints to issue coins under its authority; these are denominated in US Dollars but are only legal tender in Palau, so can in a way be considered to be in "Palau Dollars", even though such a currency does not officially exist.
The coins are usually dedicated to historical or general popular culture themes not related to the country itself. Many of them are in standard bullion sizes, including the internationally popular one troy ounce of silver.
This coin is part of the Silver Charms collection featuring specially shaped coins, and is in the shape of a horseshoe.
The Mint says about it:
Earlier this year we released the antique finish shaped version of a horseshoe. This numismatic lucky charm was an instant success. The use of a horseshoe as a symbol of good luck dates back to early times when horses played an integral part in the life of many people. They were originally made of iron, a material that was believed to ward off evil spirits. Now it is time to add another family member - a rose gilded silver version. Opinion is divided as to which way up the horseshoe ought to be nailed. Some say the ends should point up, so that the horseshoe catches the luck, and that the ends pointing down allow the good luck to leak out; others say they should point down, so that the luck is poured upon those entering the home. But there is no doubt that this shaped 1 oz rose gilded silver lucky charm with country style ornaments and silk finish is the perfect gift.