I love to make things out of "junk" I think taking something that is useless and turning it into a treasure is a wonderful thing.
I have use old wool sweaters to make mittens and hats,purses and ponchos. Here you can find out how to make mittens out of a wool sweater.
Old belts make wonderful bracelets. Here see how it's done.
Keys and metal tags can be made into earrings and pendants. This site has ideas
I have been making earring and pendants out of empty bullet casing.
Take a look at these for other ideas
And don't forget you can recycle much more into jewelry with rivets. Let your imagination run wild.