Detailed Explanation
Gives you the option to get weapon upgrades with +1 stats. Meaning with 1 copy you can get 3 stat upgrade from leveling up a weapon a single time.
Note that under normal conditions you can MAX get 1 anvil in the game
You can however get more anyway with a lucky shady guy. The items the shady guys sells are determined as soon as you enter the stage, and they can have an anvil. If you get an anvil from a chests, the shady guys that spawned in will still be able to sell you an extra copy, although you theoretically are over the limit.