Demon Bells are a traditional gift from veteran bikers to give to other riders when they buy a new bike, or to new riders. The purpose is to ward off road demons and protect the rider from harm. The tradition is said to have started in WWII with motorcycle messengers, but my great grandpa used to tell stories of placing bells for the same purpose, hung just under the collarbone of the lead horses of wagons when traveling down wagon roads at night and that the tradition had been passed down for generations before. On motorcycles, its normally hung on the frame from the crossbar in front of the engine, the lowest point to the ground towards the front of the bike because the demons are believed to reside within the road itself. When the clapper falls out or the bell falls off entirely it is believed to have served it's purpose and must be replaced as a gift from a fellow rider who genuinely cares for your well-being. To have any power over the demons, it MUST be gifted and hung by a fellow rider on your bike. You can't buy it yourself and It can't be gifted by someone who does doesn't ride. Yeah, its superstition, but also a long standing tradition with bikers all the way back to the beginning.
Not saying that is definitely what you have there, because there is really no standard for the form of a Demon Bell, only the manner in which it is received. When you are out on the road and notice that your bell has been "spent" and your bell is missing, your riding buddies will generally find or make anything that will serve the purpose. I've seen bells gifted in "emergency situations" made out of all sorts of things. Bullet casings, glass bottle necks, anything that can chime. I would imagine that finding a bell in any area with frequent motorcycle traffic would not be uncommon.
All i can say is that never once have i seen a rider with a proper Demon Bell fall victim to the road itself.
But that's all just a couple pennies worth of thought from some dude that's a stickler for the traditions of those he descended from.