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Paul makes a squirrel's silver collar.
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This is a possessive use of 's. It means: Paul makes a silver collar for a squirrel.

One easy way to see if the use is a contraction or a possessive is to expand the <'s> to see if it makes sense. That is, substitute <is> for <'s>.

Jack's boat is large=Jack is boat is large. That doesn't make sense. So it can't be a contraction, it must be a possessive.

Jack's in the shop=Jack is in the shop. That makes sense. So it is a contraction.

Does this help?
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It is surely a possessive(Genetive) case. The meaning is......'Paul makes a silver collar of squirrel'.

Possessive case is to give the sense of ownership. Eg; This is Raju's house.....'This is the house of Raju'. Hope u might have got it................
Sorry Dr.D I think it is wrong to use for here. 'That is Raju's book' which means 'That is the book of Raju', and there fore the sense of the sentence must be 'Paul makes a silver collar of squirrel'.
Or it can be.....'Paul makes silver collar of a squirrel'
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Toms MathewOr it can be..'Paul makes silver collar of a squirrel'

Sorry, I don't quite follow you.
Let's use a little common sense here. Paul cannot make a silver collar of a squirrel. He can make a fur collar out of a squirrel, but not a silver one.

If you are making a furry squirrel collar (and the squirrel is silver-furred), you could say:
Paul makes a silver squirrel collar.

But there is no <'s> involved.
Doctor DLet's use a little common sense here. Paul cannot make a silver collar of a squirrel. He can make a fur collar out of a squirrel, but not a silver one.

If you are making a furry squirrel collar (and the squirrel is silver-furred), you could say:
Paul makes a silver squirrel collar.

I just had an image of going for a walk in the part with my dog wearing his blue dog collar, my cat in a dainty pink cat collar, and my squirrel in his fancy new silver squirrel collar. Emotion: stick out tongue

Doctor DBut there is no <'s> involved.

Egg-zactly!

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