Perceived Value:

When a customer elevates a products price they must receive, or perceive, some benefit or value above the core product. For example, perhaps the lowest cost and most basic mode of transport to get to work might be the bus. As we add value; speed, convenience, comfort and so on, we are willing to pay extra until we reach the pinnacle of a chauffeur driven limousine costing very much more than the bus but still doing the same thing, getting us from one place to another.

Value can be created in many ways.  The cost of creating value needs to be lower than the additional price that can charged. Therefore, precious metal (gold or silver) boxes are probably out of the question as they are unlikely to demand the price increase for good margin!

It is my assertion that the luxury marketplace sees intangible attributes, like brand, status, and exclusivity as valuable. For many in this market value is added through; the brand (Cartier), the extras (Tiffany blue box), or the design but that has to be unique, highly recognisable and registered so as not to be copied.

Additional comment ... It would be amiss if I didn't mention Apple in terms of value creation.  The products are made by others but the value is created by the brand and design which basically takes a $500 factory door product to a $1,000 retail product.