I'm not sure there was one single custom. I suspect it was different among the Sindar, the Exiled Noldor, in Valinor, and probably very different between the First and Third ages.
I could see the Noldor of Gondolin going for the bling. This culture revolved around the works of their hands almost as much as that of Eregion. The Sindar, something much simpler and nature oriented. The chastened Noldor of Frodo's time, possibly a back-to-basics ethos (like we saw with Gildor's company- although Gildor apologized for his "rustic" hospitality).
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The entire plot of The Lord of the Rings could be said to turn on what Sauron didn’t know, and when he didn’t know it.
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