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Here we are collecting stories of precious bullet lore. Please feel free to submit some to round out the legends. I realize that a lot of you know more about this than we do, so please help us out.
Silver Bullets -Western Style Silver Bullets -Werewolves (Lycanthropes)

Silver bullets seem to have been made famous by the Lone Ranger
John Breeding of Denver Colorado offers this insight
In point of fact, the Ranger used silver bullets for a couple of reasons
  1. He did indeed have access to a silver mine (jointly owned by himself, his brother and a retired ranger named Jim Blaine) His brother was killed by Butch Cavendish, so Jim Blaine was given the mine to work. It was Jim who actually made the Ranger's bullets for him. Jim was also the only other person besides Tonto who knew the Ranger's real name.
  2. The Ranger wanted silver bullets to become a symbol of law and justice in the west. The "humane" argument isn't true, simply because the Ranger never shot to kill, only to disarm.

These come from the very first Lone Ranger TV episode, "Enter the Lone Ranger" from 1949.

Sab writes
Silver and iron are both considered magic metals so before silver it was iron as an iron sword for werewolves and silver bullets also and as well vampires
yet u have to shoot the vampire in the heart to kill it and if its a full moon and the vampire looks at the moon after being shot in the heart with the silver bullet
the moon revitalizes the vampire and infuriates it making it harder to kill.

I speculate
Let's see if I can get this correct, lycantrhope hunters please help
Originally it wasn't silver that did the werewolves in, but Silver Nitrate, a strong anteseptic
Either that or quicksilver (mercury) also toxic.
Might be a good custom bullet, 44mag hollopoint filled with silver nitrate!
Silver Bullets - Vampires Gold Bullets

I always thought that you needed sunlight, wooden stakes or holy water to do in a vampire
Movie after movie seems to have silver bullets doing the job. Is this just hollywood?
Anyway, to be safe you should order a hollowpoint silver bullet with holy water in it.

I'm probably really out in left field here, but I think that you use them to shoot zombies