ROANOKE TIMES
Copyright (c) 1995, Roanoke Times
DATE: Monday, December 18, 1995 TAG: 9512180010
SECTION: MONEY PAGE: 6 EDITION: METRO
SOURCE: MAG POFF STAFF WRITER
Still looking for the perfect gift for someone on your shopping list - with Christmas only a week away?
Money is always one gift that fits everyone alike - young or old, male or female. Money is simple to buy and almost always welcome.
But you don't have to stuff a bill in a Christmas card because money comes in many forms.
Take coins as an example.
Scott Hall, who works at the Roanoke Coin Exchange at Towers Shopping Center, said the most popular gifts this year are the American gold and silver Eagles.
Both are legal tender of the United States - valued at $1 each - but their true value is measured by the gold and silver they contain.
The silver Eagle, which is minted from one ounce of pure silver, sells for $10. Hall said the value in the future will vary with the market price of silver.
The gold coins, which are valued at the market price of gold, come in four sizes. Hall said they sell in a range of $60 for the smallest to more than $400 for the largest Eagle.
Also popular are the 1995 proof sets, which are specially struck sets of American coins ranging from the penny through the half-dollar. They have never been circulated and come in cases or boxes. Hall said the going price is about $20.
Old coins are usually items for collectors, but Hall said people like to give presents of coins with the recipient's birth date or anniversary date.
For someone born in 1935, for instance, Hall suggested the 1935 silver dollar. It sells for $10 to $20, depending on its condition.
What better place to turn to for money than a bank?
Carolyn Balthis, manager of the Tanglewood and Towers branches of Crestar Bank, said the bank sells American Express gift checks in denominations of $25 and $50. They are decorative, and the recipient can save or cash the check.
Crestar also takes orders for U.S. Savings Bonds. Balthis said the bond will arrive in the mail about two weeks after the order is placed, but you can give the recipient a small certificate saying the bond is on the way.
If you are looking for a money gift for a child, Balthis said, one method is to open a savings account in the recipient's name. You can deposit the money for a minor, and there is no charge for small accounts held in the name of a customer under the age of 18.
Crestar also has folders that can hold cash in the form of bills. Balthis said the government no longer distributes unused bills for Christmas, but tellers will help customers by looking for the freshest currency among the bills they have on hand.
Peter Milward, manager of the Roanoke office of J.C. Bradford & Co., said some customers have purchased shares of stock, especially for young children. And, he said, gifts of 10 shares of Cola-Cola or Disney, made several years ago, have produced "astronomical" returns for their holders in the last few years.
But he recommends shares in a mutual fund instead, because that's less risky than investing in a single company.
He likes two funds that have reported good returns "year in and year out" in all kinds of markets.
They are the Templeton Growth fund, which requires a minimum investment of $100, and the Washington Mutual Investors fund, which carries a $250 minimum. Milward pointed out that you then can contribute to the fund in lesser increments for future Christmases and birthdays.
These types of investments will mean more in five, 10 or 15 years, Milward said, because history tells us they will appreciate over time. Sometimes, recipients never sell the shares they receive.
This makes mutual funds and stocks excellent gifts for children, Milward said.
Tyler Pugh, senior vice president and branch manager for Wheat First Butcher Singer, said appreciated stock makes a good gift to a child over the age of 14 in a low tax bracket. This is stock you have held yourself and has gained in value. It will be taxed heavily if you sell it, but the child over 14 should be in a low bracket when he or she sells the stock.
This strategy doesn't work with children under the age of 14 who are in their parents' tax bracket.
If, on the other hand, you buy new stock as a gift, be sure to buy blue chip companies that pay a good dividend. Pugh said Christmas is not the time to take a chance on an over-the-counter stock with a volatile future.
Among stocks popular with kids, Coca-Cola is a little pricey, selling recently in the high $70 range. McDonald's has been trading in the area of $45 a share, but Toys R Us has been in the more affordable range of $23 to $25 a share.
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