It sounds a bit worrying when you say that you need to remember you were a person before you met your DH, while he hates any reminders of your live before him and wants to forget you have a past.
Those are both very conflicting things, just on the little you have written here.
I can see that having a beautiful handmade object on display might be odd for him if it's something that people would be commenting on and asking about. If you are frequently having to explain to guests and visitors that the beautiful thing they keep admiring is a handmade gift from your ex, that will keep the object as a visible presence of your ex and your past in the house. That doesn't mean I think he's right, I'm just wondering if that was part of his problem.
But at the same time, he needs to be mature enough to accept that you both have a past history that has helped to shape who you are now, but that you have both moved on from your own separate pasts to your present and future together.
It may be worse for you both, in a way, if you get rid of the item and then regret it. You won't forget the item or the man who made it just because it's not in your house anymore. And it won't undo the bit of your past which your DH hates and wants to forget about. He's placing a lot of significance on this item, but giving it away or throwing it out won't take away any of those issues with it.
And if you regret losing the item, and he can tell that you do, that's going to bother him as well, he'll be questioning why you feel sad over something that's gone and wondering why you can't forget about it.
And you might end up resenting him for forcing you to lose something you valued.
I suppose what I'm trying to say is that the absence of the item could be a bigger problem for your both than the presence of the item. Throwing it out or giving it away is not going to fix the issue he has with it, because his issue is really with your ex and whatever happened in your past, and I wonder if he's realised that.
Personally I think your compromise of storing it out of sight is the most he should ask of you.