Obsessed as I am with the weak dollar, I’ve been trying to come up with a way to strike back. Or at least take advantage. I keep hearing investing in precious metals is a good way to protect against inflation. We’re in the middle of a pretty serious inflationary cycle, despite what the president and the “professionals” are telling us. One need look no further than the price of gas to know where prices are headed.
How does one go about buying precious metals? There are two ways to do it. You can either buy it yourself or you can let someone else buy it and hold it for you. The exchange traded fund is probably the easiest way to do this. There’s one for gold and one for silver. Somewhere someone has accumulated a bunch of the stuff and is basically selling off shares which pretty closely track the spot market.
That was a little complicated for me. It would involve opening an account somewhere and putting my money in there and doing transfers. It just looked like a lot of work and no fun. If I’m going to own precious metals, I want to own them. How?
A little Googling around landed me on the US Mint’s very helpful website. From there I was directed to a mint up in Auburn. Who knew such things existed? Unfortunately it looks like they’re more tailored to larger investors. So I dug a little further and ended up on Columbia Coin Company’s very spartan website. What the hey, right?
So I emptied my piggy bank, actually it’s a glass milk bottle I’ve had for a few years, and took the coins down to the credit union. With a few dollars in my pocket, I headed over to 50th and Hawthorne during my lunch hour. Columbia Coin shares a building with an insurance company. A simple red door marks the entrance. No windows. No flashing neon signs. Just the door.
Upon walking in, I was very quickly and warmly greeted by the lady behind the counter. I mentioned I found her on-line and she went into this long story about how they used to be located downtown but things had become way too expensive, so they left. Even though it’s been two years, you could tell she was still heartbroken about moving away. But between parking and rents, she said it just made no sense to stay.
Anyway, I asked about boullion and she took me over to a case with all kinds of gold and silver coins. American Eagles, Canadian Maple Leafs, and a few others. She ended up guiding me to a couple of silver coins. Perfect! I walked out with three 1 ounce silver coins and a new hobby, tracking the daily spot price for silver. I’m guessing the dollar will keep sliding against the Euro and oil will flirt with $200/barrel until George leaves office, and maybe a little beyond that. It just seems he’s hell bent on letting his buddies raid the cookie jar as long as he possibly can.
The plan is to take my normal savings withdrawal from each paycheck and buy a couple of coins instead. Nothing big. And nothing that’s going to put me into too much trouble. Yeah, I could turn out to be flat wrong and lose a few bucks. But if I know George like I know George…
Either way, I’m going to have fun.