Fancied I dug up hidden silver (8)
I believe the answer is:
imagined
'fancied' is the definition.
(I've seen this in another clue)
I don't understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for imagined that I've seen before include "Created mentally" , "Supposed" , "Visualised" , "Not based on fact, dubious" , "Created in the mind" .)