The crone-made amulet is an altered ghostspeak amulet used in Animal Magnetism.
Players obtain it by talking to the Old Crone with a ghostspeak amulet and at least one empty slot in their inventory. The old crone will use a hair from Alice (which players do not need to obtain - the old crone finds it on their clothes) to create a special copy of the ghostspeak amulet.
Only Alice's husband (the farmer north-west of Port Phasmatys) can use it, and even then he can only talk to his wife Alice. The purpose of all this is so Alice could get his bank PIN and receive her inheritance.
Players attempting to equip this amulet on themselves receive the message: "Your ghostliness isn't ethereal enough to wear this. Perhaps you should wait a few hundred years or so?"