They can be smithed into jewelry which can then be enchanted with properties that buff certain attributes (fortify light armor, extra sneaking or lockpicking percentage, etc). Gems are useful for smithing, as they increase the skill by quite a bit. Nightcaller Temple outside of Dawnstar has a few samples of Vampire Dust, as do both The Mortar and Pestle shop inside of Dawnstar itself and Honeyside in Riften. Have a place in all builds, is the best and most beautiful circlet in the game (IMO) and carry the most unique enchanting effect of all.
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