For several weeks now, I’ve noticed an increase in hard sell advertising in my Sunday newspaper, the websites I frequent, and the few TV shows I take the time to watch.
One gold coin commercial in particular has drawn my attention, or should I say disapproval, that has been running on CNBC for several weeks now. Normally, I dismiss such rubbish by tuning it out or hitting the mute button, but the outlandish claims made by the United States Rare Coin & Bullion Reserve is, in my opinion, probably the worst sales pitch ever.
To set the stage, we have the proverbial spokesperson (i.e. salesman) running his fingers through a large pile of gold coins in front of an open gold vault with a few armed security guards standing about. In my mind, it almost seems like the wishful conclusion of Geraldo Rivera’s lame attempt to find Al Capone’s secret vault back in the 1980s.
Also going by the name of “U.S. Gov’t Gold“, the United States Rare Coin & Bullion Reserve consistently pushes in their advertisement that gold prices will skyrocket to $2,000 per ounce and that you should get in now while prices are cheap.
They also go to the extreme of saying the $50,000 in gold coins the salesman is lavishly fondling would appreciate to $166,000 if gold hits $2,000 per ounce.
Come again? This guy is pitching us a product that he claims is going to triple in value?
Why in the world would anyone sell something that’s going to triple in value? Something mighty strange is going on here.
Of course, it’s not U.S. Gov’t Gold that is endorsing the $2,000 per ounce target price, but a group of unidentified experts. How convenient! I suppose this undocumented detail would allow for a satisfactory scapegoat if gold prices drop below the prices at which their customers purchased their gold coins.
Not to leave out potential advertising space, their website also gets into the mix by hyping ten Orwell-like reasons you should buy their gold coins. Such as “the threat of terrorism“, “potential conflicts with Iran” or “the war in Iraq” are additional reasons why you should their product right now.
Sounds like the sky is falling doesn’t it?
What strikes me as odd is that the U.S. Gov’t Gold is in no way related to the U.S. Mint or the U.S. Government. Which I would presume is a strategy to look as authentic as possible so that any unsuspecting person would buy immediately from them, after falling for their hard sell tactics, and not think any different.
It also appears that the United States Rare Coin & Bullion Reserve has seen the wrath of the San Francisco Gate with some scathing insights. Nothing like having a court ruling for overpricing coins going against you, or getting banned from serving in a public company by the Securities and Exchange Commission (SEC) to ruin your business reputation.
Say goodbye to the hard sell scare tactics
However, the U.S. Dollar value of gold only reached a high of $1,000 per ounce (an all time high) but soon retreated back to the low $700 per ounce range.
No one has a crystal ball, but would you trust a salesman – particularly a questionable coin salesman – making you a bet that you could triple your money? Probably not!
It’s better to buy the coins directly from the U.S. Mint and ignore shady salesman in their entirety.
When something that seems to good to be true, it probably is.
So when you see such advertising as this, with someone promising grand returns on your money or prices that are so low you must buy now, it’s best to step back and think about your purchase. By doing some quick investigative research on your own with a quick Google search, five minutes of semi-diligent research could save you tons of time in post-purchase headaches.
As for this example, I’m sure that some time in the future – maybe 1 year, maybe 50 years – gold will be at $2,000 like the United States Rare Coin & Bullion Reserve claims. But it doesn’t mean you should rush out and buy the next hot item because everyone is buying it. More often that not, you’re probably buying at the highest price only to watch it depreciate in value soon thereafter.