Sometimes, the right gift for someone is a gift card.  I'm not a supporter of gift cards as a default gift, but sometimes, it's the perfect choice.

But gift cards are not without risk.  Many cards must be used within a specific period of time or the issuer deducts monthly "administrative fees."  In just a few months, a card's value can be completely expended.  If you do give a gift card, make sure you know the rules and share them with the recipient.

Another risk given the current economy is that the store issuing the card might go bankrupt. If a store goes bankrupt before a card is redeemed, it's basically a worthless piece of plastic.  Consumers rank so far down the list of creditors that they'll never get their money back.  There are lists floating around the Internet listing companies that are in financial trouble.  Evaluate that list with crae.  Some of the stores on the list are actually in Chapter 11 bankruptcy:  Linens and Things, Whitehall Jewelers, Bombay Company.  Some companies are very close to bankruptcy, like Circuit City.  Others are just closing stores.  In those cases, it's wise to make sure there's still a store near the intended recipient, but in most cases, stores are cutting excess capacity, leaving them with 4 stores in a region instead of 6.  Other stores are in financial trouble but aren't on the list, such as Borders.

If you are buying a gift card, choose carefully and advise the recipient to use it as quickly as possible.