I was wondering the same things.
That wood carved perfectly, with no grain that I could see. Maybe it's not wood, but some kind of fine grained, strong foam or resin.
Either way, he's a master!
I've watched silver leaf being applied to ornate mirror frames, and it is really thin, flexible, and strong. If he's using real silver, I'm guessing it's adhesive backed, so he just has to remove the paper backing and smooth it onto the lure.