Diana Clement: Golden gift of lasting value

Telecom shares or gold bars probably aren't the flavour of the month when it comes to Christmas presents. But over the long term, they'll hold their value while most convenience-buy presents are likely to be sold off for a song at your next garage sale.

Chosen wisely, Christmas presents can be good investments and that doesn't just apply to equities and cash investments. Anything from gold bars to contemporary art works or even retro telephones will appreciate in value.

If children you're buying for already have every toy known to man, then an investment might be the start of a long-term savings habit. NZX corporate affairs manager Rowan Macrae has bought shares in the exchange's Fonz fund for her 11-year-old son and he plans to pay $50 a month from his earnings as a busker into the fund.

Bonus bonds: Many lottery tickets will be bought as gifts this Christmas and most go into the bin after the draw. Bonus bonds are a more lasting gift because your numbers go back into the draw monthly.

They are always a popular present and this year an extra $1 million prize will be drawn on January 14 for bonus bonds bought between November 24 and December 31.

Minimum investment is $20 and your odds of winning are one in 9600. You have until Christmas Eve to front up at an ANZ branch and hand over your money.

0800 8 BONDS or go to their website at Bonus Bonds.

Gold and silver: Kingdoms and hearts have been won over gold and silver and many a battle fought. So if you want a glittering present, an ingot might be the answer.

Precious metal isn't the easiest to come by, but there are a couple of suppliers tucked away. At AGR Matthey in Ponsonby, you walk in, hand over your money and walk away with a gold or silver ingot.

Prices change daily and are based on closing prices in New York. Last Wednesday, a 1oz gold ingot was selling for $650.09 and a 1kg silver ingot for $348. It's a no-frills, low-margin business, so don't expect gift wrapping or fancy boxes.

0800 804-704 or visit the Matthey website.

Coins: You don't need to be well-heeled and can pick up a present in a coin dealer's shop or on the internet for a few bucks. Or you can pay many hundreds or thousands of dollars.

At Howard Mitchell's Auckland Collector's Centre in Parnell, there's something for every budget. Mitchell's pick for Christmas, if you have $8500 to spend, is a Waitangi Proof Set.

"This is something lovely that is still going to be valuable in 2025," he says. Or if your budget is more limited, try the 2005 Annual Coin Set for $129 from the New Zealand Mint.

When I searched on TradeMe this week there were more than 800 coin auctions, with one reaching more than $8000.

(09) 377-6837 or go to the NZ Mint website.

Art: The average person probably can't afford to buy a work of art from leading contemporary artists such as Shane Cotton or Dick Frizzell. But Frizzell and other well-established artists such as Nigel Brown offer prints that, if the doyens of the art world are to be believed, will appreciate in value over time.

No artist's work is guaranteed to go up in value and prices wax and wane according to current taste and other factors as diverse as the US/NZ dollar exchange rate.

Most of New Zealand's leading art auctions have finished for the year, but A-list galleries such as the Sue Crockford Gallery or the Gow Langsford are open until Christmas.

If you're on a budget, make a beeline for the McPherson Gallery, famous for its 100 x 100 x 100 exhibition where you can buy contemporary artworks that measures 100mm by 100mm for $100 plus GST.

Visit the Arts Calendar website.

Antiques: Before you take a quick trip to Briscoes this Christmas to buy a made-in-China dinner set, give a thought to antiques. Sophie Coupland, head of the fine art department at Webb's Auctioneers, picked up antiques in the firm's auctions as presents.

Chosen wisely, antiques will continue to rise in value.

(09) 524-6804 or visit the Webbs website.


Shares: Retirement Commissioner Diana Crossan says she knows of parents who buy their children one Coca-Cola share a year as a present. The shares were trading this week about the US$40 mark.

To buy New Zealand or foreign-based equities as a present you'll need to open an account with a stockbroker or an online share dealing service. There are also some administrative issues to deal with. Buying shares for relatives and friends requires them to have what's called a "common shareholder number" for the shares to be registered in their name.

The NZX recommends exchange-traded funds such as the Fonz because they contain small slices of the country's best-known companies.

It's too late to get the paperwork in your hand for an equity investment before Christmas Day, but you can make your own gift certificate, put it in a card and hand it over. Or download a free gift certificate template from Microsoft's Office website.


Visit NZX on their website (link below).


Funds: Investing in collective funds as a headstart for children isn't necessarily a great idea because the profits are taxed at 33 per cent before any money is paid out, compared with 19.5 per cent from shares or bank deposits for kids on the marginal tax rate.

Having said that, plenty of parents invest in funds. Financial planner Lisa Dudson makes an annual present into BT Funds Management plan every year for a 7-year-old godson. She plans to give him a gift certificate when he reaches 16.

Several of Dudson's clients have invested in the Fisher Funds Fledgling Fund, which sends its junior clients regular newsletters. The company also provides gift certificates, so that adults have something to hand over.

Visit the Fund Source website for more information.


Collectables: People collect everything from teaspoons to pop memorabilia. Typically, these are bought from collectors' fairs, shops or on the internet.

Fortunately you can buy almost anything that's collectable on the auction sites eBay.com or TradeMe.co.nz, and it's worth logging on for ideas. When I looked at TradeMe (link below) this week, an Air New Zealand dinner plate was selling for $12, a Michael Schumacher autographed print for $500, an auction of 14 Viewmaster sets for $156 and a Fun Ho Tractor for $42.


Financial books: Given to the right person, a financial book can be worth its weight in gold. A read such as Scott Pape's The Barefoot Investor could set someone on the path to financial freedom.

But don't bother giving it to semi-illiterate friends. It will end up at the op shop if you do.

Last year, Dudson gave her sister a copy of Slash Your Taxes Now! by Peter Sibbauld. "My sister has rental properties and didn't understand what she could claim," Dudson says. 

Good Returns Books or Whitcoulls (links below)