Leave it to Colbert’s crack team of writers and producers to catch weeks of targeted advertisements and distill them into an easily observable trend. This time, it’s gold coin and bullion distributors (e.g. resellers) advertising on conservative news sources cleverly designed to make more money off the retail investor by pounding the fear trade.
I don’t watch Fox News (or MSNBC for that matter), but like Colbert, I think it’s highly suspect that gold coin distributors are targeting the more conservative crowd since they are more likely to buy the hard sell, doom and gloom story the gold bugs are pitching.
If history is any indicator (and it is), such advertisements for the general public are usually one of the warnings signs of an investment bubble ready to pop instead of the no-brainer investment the advertiser suggests.
|The Colbert Report||Mon – Thurs 11:30pm / 10:30c|
|Prescott Financial Sells Gold, Women & Sheep|
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Of course, these hard sell ads fail to mention (unless it’s in the fine print) that gold distributors like these routinely mark up the price of their gold coins around 35 percent. With that sort of retail markup, you better hope that the gold story continues to gain momentum and hits the $1500 range just so you can break even. (Gold is trading at $1104/ounce at the time of publication.)
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Disclosure: I am neither long or short gold at the time of publication.