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Truesilver is a metal that can be mined. Truesilver deposits can also produce gems. Truesilver ore can be smelted into truesilver bars. That is the only use for it.
Truesilver sources
By far the most frequently mined source for truesilver ore is the truesilver deposit found in Burning Steppes. Distant second is Un'Goro Crater. Also found with some frequency is 
[Aquamarine], 
[Star Ruby], 
[Citrine].
Truesilver Bar
Truesilver bars are used in many recipes for blacksmithing, engineering, and tailoring. It is also a quest objective.