Many do not agree with Dylan Ratigan’s politics, but you have to love his outspoken nature when it comes to exposing crooks, corrupt politicians and scam artists.
Today, Goldline International, the maker of outrageously overpriced gold coins (e.g. an average of a 90% markup from melt value of gold in the actual gold coin) found themselves in his cross hairs after a NY Congressman calls for a Federal investigation after reviewing Goldline’s fearmongering tactics and misleading hard sell advertisements.
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Look, I could care less about the politics involved in what will obviously be an escalation in a war of words between political pundits and news channels. That’s not why I post such a video since I hate politics with every fiber of my being.
I’m more concerned with people constantly being ripped off by the hard sell advertisers capitalizing on consumer fears, and just like any other fear trade, Goldline is capitalizing on consumers fear just to make a buck. When that fear, or greed in many cases, grows to substantial numbers, it creates herding behavior and can occasionally cause an investment bubble.
However, I do choose to echo Ratigan’s take home message: if you want to buy gold, gold coins, or other types of physical gold because you fear devaluation in paper (fiat) currency, don’t buy it from someone who charges a significant markup from the meltdown value.
It’s like buying your significant other a 24 carat gold piece of jewelry, paying 24 carat gold prices, but when taking it to the jewelry store to get it cleaned or appraised, you find out it’s only 12 carat gold.
So, if you’re choice is to buy gold, my purely non-professional advice is…
Much of this isn’t exactly rocket science, and while I admit, advertisers can occasionally push all the right buttons and manage to hit precisely the right fear contagion neurons in all the right orders, but investing out of fear of missing out on big profits or that you’ll be the only guy/gal on your block who doesn’t have a shoebox full of gold coins is exactly the wrong way to invest.