One core element of classic "old-school" D&D play is that gaining treasure gives PCs the experience points they need to level up. "Gold for XP" is a must for the intended play-loop of classic D&D, which is a game of exploration and this gives the PCs the intrinsic motivation to explore. Where classic editions of the game and many OSR games differ is the "how & when" of awarding these XP for gold.
It is generally kept that non-magical items have a monetary value and that this monetary value is thus translated into an XP value. In AD&D 1e it states that the DM must convert all non-magical treasure items (e.g., gems) into gold pieces. It goes on that all treasure taken must be turned into a "transportable medium" or stored in the PC's stronghold to be counted for XP. Furthermore, the DMG explains that all items (and creatures!) sold for gp (this would be the aforementioned "transportable medium") would equate to "treasure taken" and that the coin received would then count for XP just like coins found in a dungeon. This method is what I have used for decades. You bring the treasure back to safety and all coins are immediately converted to XP, but non-coin treasure only becomes XP when you sell it and for the amount of gp you were able to sell it for (which may be less or more than the listed value).
In B/X D&D the guidelines are much looser. It simply says that after an adventure, XP are given for non-magical treasures the PCs recovered. What the DM deems as "recovered" counts. There's no mention of needing to sell items to collect XP.
My main flavor of D&D that I run these days is Castles & Crusades by Troll Lord Games. In my opinion, it's the best modern (maybe ever?) edition of D&D. In C&C, characters can also gain XP for treasure. The Players Handbook simply states that characters receive XP, on a 1 gp = 1 XP basis, for non-magical treasure they acquire during an adventure. The rest is left to the Castle Keeper running the game.
Until recently, I gave out non-magical treasure XP in C&C as I do in AD&D (as outlined above). But a recent post-session chat with my players has made me reconsider this approach.
Castles & Crusades has a rule that characters gain the XP value of a magical item if they use it for a "period of time" (details left to the CK...I rule they get the XP after using it in the next "adventure"). They don't really gain the XP for selling the magical item, at least not in my game. If you're willing to sell off a rare magical item for just some cash then you get the cash and no XP. The benefit of the magical item is in its use and not the gp value. If magical items are just normal commodities in a setting they lose the figurative magic for me (but that's a discussion for another day).
Getting back on track...the magical items for XP rule made me reanalyze the treasure for XP rules. Coins convert to XP once they are safely removed from the dungeon/lair. But now I differentiate the non-coin treasure. If PCs want/need to sell or trade a gem, piece of jewelry, found pelts, etc. then they gain the XP for gp value equal to what they sell (or trade) it for, but only once they complete the transaction...not a moment sooner. However, should a PC decide they want to keep the pretty gold ring for themselves then I now award XP equal to the stated value after they keep it for a "period of time." Should the PC sell the item later on, I adjust their XP down by the difference between stated value and transaction value (it will never go up). This can help award PCs with XP for such treasure items sooner if they're not near a locale that trades in high-value goods (don't break your setting economies with a flood of high-value items...most settlements don't have thousands of gold coins to spare) versus waiting to gain the XP from a transaction.
There's also an in-world verisimilitude aspect to this method that goes beyond just mechanics. In our real world, people have always amassed "pretty things" be it jewelry, art, porcelain, etc. to adorn themselves and their homes as points of pride, joy, and/or boasting. Not every pretty ring is hawked at the nearest pawn shop. In fact, most aren't.
With this small tweak (that was a collaborative discussion with the players) we not only have a mechanical benefit and enhanced verisimilitude, but add another layer of player choice. Player choices (and resulting consequences), not GM fiat, are what drives meaningful campaigns and satisfying emergent gameplay in RPGs.
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