This is a piece of hardwood, bone or stone that fits comfortably in your hand, and has a suitable hole in it already, or is able to be drilled out so that it has a suitable socket hole. The perfect hand hold is a rock with a smooth hole in, often found by rivers and on beaches worldwide.
Any greasy, oily or slippery substance such as animal fat, vegetable oil, Pine pitch or crushed evergreen leaves should be suitable. Apply a little lubricant where the hand hold and drill top meet, before each drilling attempt. This is necessary to limit friction at the top of the drill.