PM as gift - BIG mistake

[bonedaddy]

I have a "friend" that just realized how big a mistake giving (and receiving) Precious Metals as gift is. After receiving a $10 Indian head Eagle, a $5 Indian head Eagle, and a $2.50 Indian head Eagle for his birthday - he got to thinking about when the time to sell arrives. The sentimental attachment of the "gift" is probably going to make his selling decision harder. That brought other PM gifts that have been exchanged to mind. He gave his wife a graded set (4 coins each) of gold 2012 and 2000 Perth dragons for her birthdays. She gave him a 1994 gold maple leaf (the year they got married) for their anniversary. These "gifts" are pretty much off the market now. Unless spot hits $5,000, he can't ever see being able to sell them. There have been many other PM gifts, but these alone take about a 5 ounce chunk out of his "investment" hoard.

So, unless your wife is willing to accept a "gift" as a temporary "investment", my "friend" highly recommends you NOT give PMs on sentimental occasions.

I told my friend to take all of those gifts on a fishing trip and ponder his problem. Hopefully his boat is more stable than mine.

[Milanion]

It's a matter of how one's family views "gifts". Between my wife and I, gifts are kept until they are no longer desired. My in-laws gave me some clad state circulated quarters thinking they might be collectible, they went to pay for laundry.

I'm just a steward of the PM's (and things) in this world, when it is time to let go of those items, I will. If I am not able to, then the PM's (or things) own me, not the way it's supposed to be.

[Dude]

You pretty much know that you are in dire straights if you have to sell. At that point you may very well consider it the best gift you ever got.

[WhyKnow]

A good friend gave my brother a sterling silverware set for his wedding. The friend got the set from his mom's estate. The brother sold it to me later, I gave it to my wife for Christmas and she sold it to a refiner to buy a music instrument. Same brother just sent me an ASE yesterday from a wager, I'll keep the letter he included but sell the coin. It's all good. Don't be so sentimental.

[GOLD DUCK]

A good friend gave my brother a sterling silverware set for his wedding. The friend got the set from his mom's estate. The brother sold it to me later, I gave it to my wife for Christmas and she sold it to a refiner to buy a music instrument. Same brother just sent me an ASE yesterday from a wager, I'll keep the letter he included but sell the coin. It's all good. Don't be so sentimental.

QWAK,WhyKnow,Part of the hidden value of HOLD is that it acts as a WEALTH MAGNET and the biger the total weight the more wealth it draws to it self!

Treat GOLD with RESPECT and you will be REWARDED --- when you DISRESPECT GOLD you will lose WEALTH --- it has powers that we still do not understand!

the DUCK

[Ragnarok]

I do not feel giving PMs as gift is a mistake. It is a way to do unto others as you would have them do unto you, and if it helps them someday, that's a good thing to be remembered for imho.

I've given gold and silver bullion as gifts, explaining to the recipient the value and reason for doing so, to save them until the last possible need, and where/who to sell them (good LCS) to if need demands.

That said, I have not given proofs or other rare/numismatic items to those who have no knowledge or appreciation of such things. That would indeed be like throwing wealth to the wind!

2c, R.

[Constantine]

I would give PMs as gifts, but I would be rather circumspect about it. Most people I know, with whom I have discussed their value, would not be good candidates to receive them. If push came to shove, many of them would sooner take a one ounce Silver American Eagle and try to ram it through a vending machine for a pack of stale Twinkies rather than appreciate it as a gift, let alone hoard it in case of an economic collapse....

[Argentsum]

I would give PMs as gifts, but I would be rather circumspect about it. Most people I know, with whom I have discussed their value, would not be good candidates to receive them. If push came to shove, many of them would sooner take a one ounce Silver American Eagle and try to ram it through a vending machine for a pack of stale Twinkies rather than appreciate it as a gift, let alone hoard it in case of an economic collapse....

Historically jewelry was considered wearable wealth. It was a gift of beauty as well as security. PMs are the generic, brown bag, form of jewelry. Jewelry without form. Base, and basic. For those who understand PMs, the gift is elemental rather then ornamental. Its the provision of security without encumbrance or lien.

[Tbonz]

Waiting for new submersible and coordinates to that lake that sucks down boats with people's gold hoards on board.

[Irons]

I have a hard time spending my money on chinese landfill fodder, even as a gift.

If the family member then wants to throw away wealth for junk its outta my hands.

My wife gets Gold unless she asks for something else. She gets Gold a lot!

[hammerhead]

I see what you mean BD. That is a large amount of jingle to be holding on too.

But what is a gift anyway? When I give a gift, I want the person to use it the best way they can. I put no stipulations on it. once it is given, it's gone. Very rarely will I ask someone what they want. I give what I feel like giving.

I enjoy giving P.M.s as presents. Doesn't matter what form. It could be jewelry, ASEs or rounds. I try to get the year of the occassions. I will let them know what it is worth at the time if they already don't know.

This one time, at band camp, a girl brought in 7 AGEs to my LCS when I was there. She had brought in 9 the previous week. They were given to her from her grandfather. She paid off all her debts with the first round and she ended up buying a car that night.

The biggest draw back with selling is that you can't have your cake and eat it too.

[Pyramid]

Good thread and good posts above. Giving PM as a gift depends on the donor and the recipient, their personal situation and the personal motivation on both ends.

I have given my niece and nephew a silver coin every year for XMAS in addition to very small amounts of Chinese-made landfill fodder like puzzles, games, Legos etc. that are potentially mind-enriching as opposed to video games and other crap. By the time they become adults, they will have a nice little stash of assorted coins from multiple countries. At that point, I hope they realize that Uncle Pyramid was closer to a mad scientist than a crazy and weird old guy that gave them some silly slver coins. When they become adults and the silver is in their hands and the childhood toys are at Goodwill or in a landfill, I hope they will thank me for pointing them in the right direction.

[Gold Rush]

I have taught all four of my kids the importance of PM'S and I give them gifts of it for birthdays and Christmas..they all know and understand that if they hold onto it, that it will help them with their future

[Constantine]

Historically jewelry was considered wearable wealth. It was a gift of beauty as well as security. PMs are the generic, brown bag, form of jewelry. Jewelry without form. Base, and basic. For those who understand PMs, the gift is elemental rather then ornamental. Its the provision of security without encumbrance or lien.

Not so - not in all cases at least. It depends on the fabrication. My numismatics are quite ornamental.

Also, be they ornamental, elemental, substantial, or abysmal, people may or may not appreciate their value, regardless of its form - jewellery or otherwise. If you haven't noticed, US malls are awash with Cash$$$-For-Gold kiosks, and I'm quite certian they aren't making a fortune buying back people's unwanted bullion coins. I wouldn't be surprised if unwanted gifted jewellery is oft in that mix

[ttazzman]

I gave my kids with they were growing up for birthdays and christmas.......gold..silver...stocks...bonds...et c anything that they wouldnt just go out and spend.......when they both hit 16 they sold the stocks to buy cars.....they still have the gold silver and bonds.....they view them as emergency funds of last resort...and now they have considerable value

[Ragnarok]

If someone ever gives me a Au/Ag/Pt/Pd/etc gift I'm certainly NOT going to tell them they made a mistake!!

R.

[RealJack]

I don't see it as a problem.

If times get hard enough, taking a pliers to my own gold crown might become a viable solution.

[Al K. Hall]

I give gifts for the benefit of the recipient, not my own feelings. If they want to sell something of real value (precious metals) for something else, including of no real value, so be it. I won't be offended, though I might pity them for their error.

[Claimjumper]

Suppose you give two one ounce coins a year to your daughter. One for Christmas & one for her birthday. This goes on for twelve years, you die & quit giving.

After fourteen years she has difficulties & must sell her twenty four ounces of gold. This sale should be reported on her taxes as a "collectables", 28%, long term capital gain. She has no receipts, so what will the IRS accept as her "Cost Basis" to determine her tax liability? Could her cost basis be set to zero?

Any ideas on how to best keep this from becoming a problem is the question.

[Irons]

Suppose you give two one ounce coins a year to your daughter. One for Christmas & one for her birthday. This goes on for twelve years, you die & quit giving.

After fourteen years she has difficulties & must sell her twenty four ounces of gold. This sale should be reported on her taxes as a "collectables", 28%, long term capital gain. She has no receipts, so what will the IRS accept as her "Cost Basis" to determine her tax liability? Could her cost basis be set to zero?

Any ideas on how to best keep this from becoming a problem is the question.

Make sure the recipiant knows they can sell a few here and a few there and not be subject to taxes.

[Claimjumper]

Make sure the recipiant knows they can sell a few here and a few there and not be subject to taxes.

Unfortunately that doesn't work at our only coin shop any more. For only five AGE's the owner said their bank won't give them enough cash to operate, so the shop must write checks for their purchases.

I wonder if others have ran into this "check only" issue, & how wide spread it will become as Uncle gets more desperate for revenue?

[Irons]

Unfortunately that doesn't work at our only coin shop any more. For only five AGE's the owner said their bank won't give them enough cash to operate, so the shop must write checks for their purchases.

I wonder if others have ran into this "check only" issue, & how wide spread it will become as Uncle gets more desperate for revenue?

Take a road trip or stroll through a coin show.

I won't tell somebody to not pay tribute to parasites who don't deserve a flippin dime, but come on man it ain't that difficult.

[Chester-Copperpot]

Unfortunately that doesn't work at our only coin shop any more. For only five AGE's the owner said their bank won't give them enough cash to operate, so the shop must write checks for their purchases.

I wonder if others have ran into this "check only" issue, & how wide spread it will become as Uncle gets more desperate for revenue?

Came across this at one place. He never had cash on site, wrote checks and told you to cash them in across the street. He had worked it out with the bank, where the cashed them with no fees or problem. He wasn't a coin shop as such, he was more of a "gold buyer" business. He did offer fair prices though, and was very busy. Owner was about 28, sat and chatted to him for a while, I liked how he did business.

[shamash]

I've given gold to my better half for well over a decade (birthdays, Christmas and sometimes Happy Tuesday or whatever). She definitely appreciates the gesture. We had calculated what our monthly expenses were and had roughly calculated we could survive on 1 ounce of gold each/month if we had to. One Christmas (when gold was much cheaper), in her stocking, I had given her bars sets from 3 different refineries...5gram, 10 gram and 20 gram bars (105 grams). Our sister in law (who was visiting at the time) sort of scratched her head at this somewhat unusual gift and my wife told her that he (me) had just given her 3 months of retirement. This entailed more head scratching, of course.

The question on this forum often entails how much is enough. I certainly can't guess what the future will bring so seldom try to speculate what may be and focus on what is. Anyway, I'm glad she understands even if all she got in her stocking was a 2012 sovereign this time.

Keep stacking!!

[enzyme]

Solution:
2 is 1 and 1 is none.
I like the 1 for b-day and another for Christmas/ Hanukkah /Festivous / Kwanzaa. Sell one keep the other. Besides, Gold is money and should be used occasionally...right?

[sandiegogold]

Any present is a good present, but a present that is given to you that can go up in value is a great present!!

[Argentsum]

Suppose you give two one ounce coins a year to your daughter. One for Christmas & one for her birthday. This goes on for twelve years, you die & quit giving.

After fourteen years she has difficulties & must sell her twenty four ounces of gold. This sale should be reported on her taxes as a "collectables", 28%, long term capital gain. She has no receipts, so what will the IRS accept as her "Cost Basis" to determine her tax liability? Could her cost basis be set to zero?

Any ideas on how to best keep this from becoming a problem is the question.

I keep receipts on purchases merely to prove ownership. In previous times, this was unnecessary but now-a-days the old adage of possession being 9 tenths of the law is not always followed.

Receipts are pieces of paper. Gold does not age. Gold is anonymous.

Take this hypothetical scenario.

I buy a piece of gold and the next day I sell it. Did I turn in my receipt along with my gold that I sold?

No. So I now have a receipt for... Take your time... Think it through...

This underscores why governments hate gold in private ownership. It can't be accurately tracked.

[Ragnarok]

Any present is a good present, but a present that is given to you that can go up in value is a great present!!

And one that can HOLD/PRESERVE purchasing power through your lifetime, and your childrens', and theirs...

[~BS]

"gold is money" so don't be surprised if they take it to a shop and get 70% of what you bought it for and exchange it for money.