First you will need a golden pencil. I guess win one or buy one on ebay.
I attached the chain using wood screws. Hopefully they hold up because if this ever falls on my toe it is going to hurt.
I would recommend using a heavy pure gold chain. But I used a $5 one from a costume shop.
Also, it has my name on it which might come in handy in some situations.
I have since made a Gold Pencil Pencil Holder and a Gold Pencil Pipe.