Gold diamond necklace

Gold diamond necklace is a quest item in. During the secondary quest The Price of Honor, after finding the letter and key on one of Timmon's brothers' bodies, you can go back to where Agda's body was found and see a ship's mast out in there water. There's a sunken chest there with this inside.

You can choose to return this or not if it was retrieved before turning in the quest.

Associated quest

 * The Price of Honor