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As above classic guitars are a good choice. I have a couple I bought with bits of inheritance from grandparents. I'll never sell them.
A nice acoustic like a Taylor or a Martin is a good choice. It will only get better with age as well
[url= http://singletrackworld.com/forum/topic/newness-from-enigma ]Just in case you do want that Ti 29er[/url]
The do custom sizing / builds.
A word of caution about nice watches.
My Boss had a very nice Breitling ,worth somewhere in the region of my annual take home pay.
He went out in Manchester on a saturday night wearing said watch.
He no longer owns a nice Breitling.
+1 for nice watch or art.
Do you have a wife and/or kids? It might be worth getting you wife a nice piece of jewelry (from your Gran) and/or something for your kids to inherit when older!
Currently toying with the idea of Lenin Peak or Tein Shan with a mate who's just back from there. I doubt that a 7000m+ peak in the former Soviet Union would ever be anything other than an adventure.
Tell me more? We've climbed extensively in the alps over the last 20 yrs, but never further afield. My pal suggested an 'expedition' type holiday next time (ie a bit more remote and less organised than Western Euro mountains). Don't know where to start, has to be reasonably cheap to access.
So if it's lost or stolen you get another with the insurance money. It will still be a momento to remember him by.
Just make sure it's specified on your contents insurance!