selling a gift, got busted!

Hello Limo Princess,
I have an etiquette question that is keeping me up at night...I am currently selling a lot of my knick-knacks and other things on E-bay. I am trying to declutter,raise money for a trip as well as pay for graduation gifts for a niece and nephew. My sisters-in-law found that I was selling something one of them gave me 5-6 years ago, and were very unhappy about it. They bid on the item and sent a few harsh comments my way via e-mail. I tried to call and talk to one of them about this, and she basically said it is something she would like to have to complete a collection and also that she wants to give it to her daughter, my niece. She said she was perfectly willing to rebuy it back, even though she had given it to me. She also said they did not mean anything by the threatening e-mails. ACKKK! She even stated that she just bid for the fun of it. I canceled the auction. I have no idea if my niece really wants this item, or if it's just my sister-in-law "yanking my chain"...but being as my niece is about to go to college, I was going to give her a check for whatever money I made on this, and a few other items I'm selling. Is there any way I can save face in this situation? I had actually thought selling the item, to benefit someone was a good thing, but I was obviously wrong. I also thought gifts are given as gifts and not expected back someday. How do I give this item to my niece? I'm sure my sisters-in-law have discussed this in front of her. Help!
Sincerely Yours, Marion

Dear Marion,
You poor thing! You kept this item for several years and since it's a knick-knack, obviously it's not something they gave you out of great sentiment for a special occasion. It's not like you are selling the family silver for heaven's sake, so stop beating yourself up over it. It was yours to do with as you pleased and if you want to sell it, that's entirely up to you. People sell things that other people gave them all the time--I traded in the car my dad bought me for my 16th birthday--nothing lasts forever. I could understand their behavior if it was a priceless family heirloom with tons of sentimental value--like great-grandma's diamond engagement ring; but not a little knick-knack. Re-gifting is a different matter, but that's not what happened here. The correct thing to do, now that your sisters-in-law have beaten you to death, would be to ask your niece if she truly wants this item, and if she does then give it to her with all the best wishes and tell the story at every holiday of how you tried to Ebay off the priceless family gift and laugh about it--as will everyone else--at your sisters-in-law.Now, I will address the egregious behavior of your sisters-in-law who are absolutely out of line here. They gave you a gift without mentioning that it came with strings attached, not because they thought you would enjoy it, and expected you to store it forever and be slobberingly grateful for the priviledge. A gift that is given with strings attached is not a gift at all, and your sisters-in-law are actually the ones out of line here, not you. It would behoove them greatly to get a better understanding of what a "gift" is and then for them to badger you because you are selling something they wanted--THAT WAS GIVEN TO YOU AS A GIFT--without consulting them is reprehensible. They are absolutely in the wrong to try to guilt you into giving back their gift and still claim it was a gift to you. They can't have it both ways, and to distress you to this degree is unforgivable and I hope that your niece is a better person than your sisters-in-law and that they are present every time you tell the story of how you tried to Ebay off the priceless gift.
All the Best,
Limo Princess