During one of the Grey Beards quests to find more dragon shouts, I come across an open chest just before you descend the steps of Angarvunde to reach the Word Wall. In the chest I find the handle for a broken steel sword. My question is, if anyone knows, does this hilt have any relevance to another quest or is this just random loot to sell to a blacksmith? This is the first time I've come across an item like this so I was wondering.

I think it is an easter egg referencing LOTR.

EDIT: here, in wiki:

The http://elderscrolls.wikia.com/wiki/Broken_Steel_Sword_Handle in http://elderscrolls.wikia.com/wiki/Angarvunde is another reference to this series. Its location (next to a skeleton with only a ring in its possession) are referencing http://lotr.wikia.com/wiki/Sauron in the series.

Nope, it's just junk. I thought it was so wicked ironic... the lady you are helping is all greedy and runs in to claim her treasure and then that... hahahahahahahaha

Hm, never heard of that! Weird...

Aha! Very cool. Thanks for the link!

Youre welcome. Its a cool thing to stumble across.

For sure, no way am I selling this item now, haha!

I kept the sword handle too. I was hoping I could use it in combat, but I don't think its a weapon. I think its just miscellaneous junk if i remember correctly.