The story of gifts brought to an infant over 2,000 years ago by wise kings from an exotic land captivates our attention each year. Some believe the story to be true in every detail; others see it as a children’s tale of hope and intrigue. But we all know the three gifts: gold, frankincense and myrrh. For most of my life I could neither spell the last two nor could I wrap my modern-day mind around the nature or value of either.
I believed frankincense was, well, a fragrance of incense and it certainly can be that. Later I discovered it was much more. It’s a rare and costly oil valued by kings to promote health and wellbeing. Likewise, myrrh was used in many forms and had application in perfumes, medicines and burial spices. (Visualize a mummy!) I’ve scratched both frankincense and myrrh off my list of gifts to give or receive this season. But the more I know about money, the more I place gold at top of the list.
Giving Gold
Several years ago, I began giving gold for birthdays, graduations, anniversaries and Christmas. In alignment with my passion for financial literacy, meaning, purpose, lasting value and legacy, I found the gift of gold best fit my mission. As a modern-day queen, I find gold to be a fitting gift for any of my royal family and friends. Here’s why.
Intriguing
It’s intriguing! Whether the recipient is experiencing the precious metal for the first time or has oodles and oodles stored in a private safe or vault, holding a newly acquired item of gold is exhilarating. Touching a tiny coin the size of a dime and realizing that it’s actually worth over $200 is always a thrill for me. Any size coin or piece of jewelry invites close scrutiny and stirs up a sense of wonder. Gold adorning neck or ears or wrists or hands feels luxurious and empowering.
Useful
It’s useful! Those who would have preferred cash as a gift need only take the gold to the nearest, trusted gold dealer or pawn shop to sell it for the current market value – minus the markup, of course. And voila! Cash on the barrel head!
At the other end of the spectrum are those who treasure the gold item and vow to keep it forever. They envision enjoying it for a lifetime and then passing it along to their children’s children.
Valued
It’s a valued asset. Gifts of ties, sweaters or gift cards are valuable only if used for something other than adding clutter to closets and junk drawers. The estimated value of unused gifts cards currently held by Americans is $21 billion. Inflation devalues these. Some have expiration dates. By contrast gold coins and jewelry are generally kept in a safe place. For example, an old friend recently found a collection of silver coins that my husband had given to her son many years earlier. Because the mom was concerned that her young son would not understand their value, she took them for safe keeping. Despite their many moves and devastating life changes, she managed to keep the coins safe.
It’s an appreciating asset. The coins in the story above did something that few other gifts could possibly do. They doubled in value while sitting in mom’s possession. Best surprise of all!
Legal Tender
It’s a prompt to encourage a “legal tender” upgrade. Legal Tender is money that must be accepted if offered for payment of a debt or purchase, including all coins and paper money issued by the United States Government. According to Article 1, Section 10 of the U.S. Constitution, individual states have the authority to pass legislation authorizing the acceptance of gold and silver as legal tender. (For the historical context check out the Legal Tender Act of 1862.)
To date, twelve states have passed legislation that allows gold and silver coins issued by the U.S. Government to be accepted as legal tender within their borders. These states are Utah, Texas, Missouri, Louisiana, Kansas, Indiana, Wyoming, West Virginia, Tennessee, Oklahoma, Arizona, and South Carolina. More are expected to join this movement. Missouri even added a clause preventing the Federal Government from ever confiscating the gold or silver held by private citizens within the state. (The savvy legislators in Missouri really know their history!) Any reputable gold dealer will sell government issued coins. They also help the buyer distinguish them from other coins which have value but cannot be used as legal tender to pay debts.
Think Big!
While U.S. government issued coins are legal tender, they are not generally accepted by the business community yet. So realistically a person would be hard pressed to demand that gold or silver be accepted for payment of goods or services. However, the forward-thinking members of our wealth community enjoy imagining a world where government debt is gradually eliminated and financial transactions are made using a solid, appreciating asset. A gift of gold reminds us to think big. It may encourage a movement to upgrade the legal tender status in all fifty states! We can all acquire gold, write our governor and see if “we the people” can bring about yet another important revolution!
Teaching Tool
It’s a fun teaching tool. No one who is serious about financial literacy can resist an opportunity to stir up thoughts of legacy wealth in the minds of others. A gift of gold or silver inevitably changes the money conversation in the room and manifests mindset elements focused on the future. Wearable gold and silver put beauty on display and changes the frequency of the atmosphere. When I wear gold, my thoughts focus on wealth. According to some motivational literature, wearing gold actually attracts money. This thinking drove me to replace my costume jewelry years ago. I prefer the real asset that transforms my mindset as I wear it each day.
It’s truly the gift that keeps on giving! Nothing quite compares with the mindset and long-term benefits of gold. Kings and queens give and receive gold!
Connect with Gail on her website or read more from her on Plaid.
