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aelephant comments on Evaluability (And Cheap Holiday Shopping) - Less Wrong
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"Which is more memorable, a $25 shirt or a $25 candle?" I asked my younger brother and he said the shirt.
Also the 'theory' will only work if that person knows the worth(cost) of the item Or I guess you could leave the tags on.
Everyone I know always deliberately cuts the price tags off or goes over them with a permanent marker. It is considered gauche to show off how much or how little you spent on someone's gift. In this case, it might make more sense to put emphasis on how expensive the gift itself appears to be.
Is there a market, then, for products on which the price tag cannot be removed, thereby allowing you to demonstrate how expensive it is? Books are an example: often the price is listed on the cover (of course, unfortunately this mainly happens for paperback books, which are cheap).
I suppose you could also go over the price tag with an insufficiently opaque permanent marker.
Where I am, it is customary for book stores to put a sticker onto the price printed on the cover when you ask them to wrap the book in wrapping paper.