My Mother inlaw told my wife she is thinking about giving each of the grandkids silver this year for Christmas. It sounded like a very good idea, but after thinking about it I am not sure because of the capitoal gains tax. Here's my reasoning you could receive cash gifts upto $13,000 a year tax free, but any silver gift would be fully taxable at 28% when sold. I am thinking it maybe smarter to give each of them the cash with a invitation to take them to the coin shop to purchace siver. I know my kids would be excited about this but not so sure about the other grandkids. So what would you do?
