Jeff Pelline: 'Let them drink Bud!'

We're a resilient nation, but the economy is testing our mettle lately: a bearish stock market, a weak dollar, "stagflation," corporate layoffs, shrinking health benefits, a state budget crisis and so on. Even American icon Budweiser is not immune: Bud fell into foreign hands this week, thanks in part to a weak dollar. "Hey European forefather dudes! This Bud's for you!"

Despite our economic woes, my family and I and our friends have found a silver lining in this dark cloud.

Here's a list of 10 "value plays" to make you rich (or feel rich) in the down economy, including some geared toward a beer-can budget:

1. Pan for gold. We live in the Gold Country (though some people prefer "culture and creativity at the edge of nature"), and gold is nearing $1,000 an ounce. Gold panning is fun for the entire family. The north fork of the Yuba River in Sierra County, South Yuba River State Park and Malakoff Diggins, among others, are possibilities. Go to www.historichwy49.com/goldfact.html for more information. Like fishing, the scenery is beautiful even if you wind up empty handed.

2. Full-service gas fill-up. The extra cost of having somebody else pump your gas, wash your windshield and check your vehicle's fluids and tire pressure is an anachronism, though the service is still offered at a handful of gas stations - often for extra. But rising gas prices are closing the gap. At the Union 76 station in Brunswick Basin, gas plus all these extras cost the same price as "self serve" - as little as $4.59 per gallon. The station used to charge an extra 50 cents per gallon for "full serve." How's that for a deal or at least a throwback to the '50s with "Union Oil's minute-man service"?

3. Host a foreign exchange student. A weak dollar makes "coming to America" attractive for foreign students, not just Eddy Murphy-like monarchs. Think about it: You can learn about far-away places without even going there! Our family hosted a Norwegian student this month. Alexander enjoyed the experience, and we learned from him. For Alexander, Nike shoes, an iPod and a cowboy hat (bought in downtown Nevada City) were all bargains using a credit card in his country's currency.

4. Buy a used sailboat. Like the double-mint twins, you can benefit doubly. First, sales of so-called luxury goods slow sharply in a economic downturn, so sailboat prices are low. In addition, you avoid the need to fill up your boat with marine fuel. Sailing is a great sport that you can learn for life, and our area is filled with good sailing lakes, ranging from Scotts Flat to Lake Tahoe. Go to the sailor's bible, www.latitude38.com, for a list of used sailboats. I saw a 22-foot Catalina, built in 1981 and in excellent shape, for $4,300. The "pop top" on this sailboat makes it extra roomy for boat camping.

5. Buy a used gas guzzler. With gas at more than $4.50 a gallon, this may sound ridiculous. But the prices of many used SUVs, RVs and motor boats are plummeting as a result. A used Hummer is going for $10,000 less than it would have last year, a used car dealer in Canada told CTV, the country's largest private broadcaster. Besides, it could be your home until gas prices come down.

6. Refinance your mortgage. The Federal Reserve is signaling that it might resume raising interest rates again to fight inflation, so it might be a good time to refinance an adjustable-rate mortgage to a fixed one. Check with your lender to see if it makes sense.

7. "Hedge" foreign travel costs. If you travel abroad, the weak dollar will make your trip extra expensive. We took a trip to London just before Christmas and it cost a king's ransom. One way we saved, however, was to pay for the hotel well before we left in dollars. We bid on a package through the Web site www.luxurylink.com and won with a minimum bid. (Not many people want to go to London then.) We also saved on the VAT. You also can buy an all-inclusive vacation such as a cruise or a packaged tour and avoid the risk of currency fluctuations. Priceline.com is another good travel Web site and includes hotels in London and Paris.

8. Buy a house. You've heard it before: Some great bargains exist on the open market. You can also check out the listings in local newspapers, including The Union, for homes that are in foreclosure.

9. Invest in oil- and natural gas-related stocks. The rising price of oil and natural gas can be a boon for the industry's stock prices. Big Oil isn't always the best choice. One of my favorites is a stock called San Juan Basin Royalty Trust (SJT), which has a royalty interest in gas properties in northwestern New Mexico. SJT pays a cash distribution and its yield stands at a generous 8.5 percent. Some alternative energy stocks also are good plays, but they carry more risk and are volatile.

10. Go bargain hunting. The weak economy is forcing retailers to cut prices. On a trip to San Francisco with our foreign student two weeks ago, I bought two extra-durable pairs of flip flops for my son at Old Navy for only $5. On bigger ticket items, such as cars, Chrysler is offering zero percent financing as well as a program that essentially freezes the price of a gallon of gas for some new car buyers at $2.99 a gallon for three years. Be careful to pencil out whether the offers make sense, however.

There you have it: Some ideas to cash in on the economic slump. You might just feel like shouting out like a modern-day Marie Antoinette: "Let them drink Bud!"

Jeff Pelline is the editor of The Union. His column appears on Saturdays. Contact him at 477-4235, jeffp@theunion.com, or 464 Sutton Way, Grass Valley 95945.