Several months ago I wrote an article addressing the rising number of complaints against one of Glenn Beck's sponsors, Goldline. The big money for gold dealers like Goldline is not in selling gold, but gold collectible coins. My prior article outlines this in detail and raises the important warning that gold coins are sold for as much as 30 to 40% more than the dealer cost. This means that if you 'invest' in gold coins you must see the value go up 30 to 40% just to cover the dealer profit. To put it a better way, if you invest $10,000 in gold coins you truly have only about $6,000 to $7,000 in assets on day one.
I was listening to Beck's radio show yesterday and heard him do his standard Goldine commercial. It was a bit different than I have heard in the past. Glenn told his listeners that how he buys gold is to do so via gold collectible coins. He then repeated the tired old pitch about the idea that collectible coins would not be confiscated if the government decides to force people to turn in their gold.
Even though it is true that President Roosevelt did make owning gold illegal in 1933 this applied to gold coins as well as gold bars. It is a myth that buying collectible gold coins would have exempted you from this presidential executive order. The reality is that only one person faced prosecution under this order and the idea that it could ever be enacted again is highly unlikely.
Could the phone call have gone like this:
"Glenn, Goldine here. Can you help us out by telling your listeners to buy the collectible gold coins? We make so little on selling gold, pushing the collectible coins would really help us out right now. Why don't you give your audience the pitch about collectible gold coins being exempt from government confiscation."
Funny, I did not hear Glenn tell his listeners that their investment would be worth 60 cents on the dollar the day they sent their money off to Goldline. I like Glenn Beck but in many years of rubbing elbow with these media personalities, I have found that almost all will pitch anything they can make a buck on.
*** Update: Goldline Execs Charged With Fraud
Helping you make the most of God’s money!