Is Beck's Goldmine of Fear Running Out?

iVillage Member
Registered: 01-24-2010
Is Beck's Goldmine of Fear Running Out?
Tue, 05-18-2010 - 11:20pm

Glenn Beck is facing the spotlight for hawking wildly overpriced gold from Goldline, one of his biggest remaining advertisers and the exclusive gold peddler on his show:

"While the business practices of Goldline may have been legal, in the instances where customers have told us of their experiences with that company—including showing us the invoices for purchases—I found that the customers would have been better served working with many dealers other than Goldline. The price differences for easily available merchandise were so large in some instances that I actually felt badly for the customers who let themselves be taken advantage of. A number of other coin dealers around the country have regularly told me similar stories about Goldline’s pricing policies."

As Politico explains: "Talk show host Glenn Beck and Goldline International, a California-based gold retailer, have colluded to use fear mongering tactics to bilk investors, according to a stinging report issued Tuesday by Rep. Anthony Weiner (D-N.Y.)."

The Congressman's report alleges:

"Key Findings
 Goldline Grossly Overcharges For Their Coins The average Goldline mark-up was 90% above the melt value of the coin. The largest markup seen on a coin was 208% above the melt value. The average Goldline markup in comparison to the best price we could locate on competitors websites was 47%, going as high as 102% on one of the coins they offered.
 Goldline Falsely Claims To Offer “Good” Investments By selling gold at twice the melt value, the price of gold would need to double for consumers to break even on their “investment.”
 Goldline Salespeople Misrepresent Their Ability To Give “Investment Advice” Sales people imply that they are “Investment Advisors” or “Financial Advisers” by offering investment advice, which insinuates that they have some sort of fiduciary responsibility to get you the most return on your investment.
However, since they are not licensed “Investment Advisors” (the industry term), they have no such responsibility. In 2006, the Missouri Secretary of States' Office, Securities Division filed formal consent order against Goldline for exactly this reason and recovered over $200k for an elderly consumer that was ripped off.
 Goldline Formed An Unholy Alliance with Conservative Pundits to Drive a False Narrative
On numerous occasions, Glenn Beck has dedicated entire segments of his program to explaining why the U.S. money supply is destined for hyperinflation with Barack Obama as president. He will often promote the purchase of gold as the only safe investment alternative for consumers who want to safeguard their livelihoods. When the show then cuts to commercial break, viewers are treated to an advertisement from Goldline."

And here are some quotes from Beck and friends trying to herd their right-wing audience into buying overpriced gold:

"“Tonight, are we facing the end of the almighty dollar?... So I’m sure we can all assume that the dollar is here to stay, and everything is just peachy. But in the off- chance that, maybe, somebody in the Middle East wouldn’t tell us exactly the truth, you know, that they’re not exactly 100 percent reliable, maybe we should discover what it means for our dollar and our country if it’s no longer pegged to oil. What does that mean for you? ... Any way to protect yourself? Gold”. (Source: The Glenn Beck Show 10/7/2009)
 “We could be facing recession, depression or collapse. Nothing Left! ... I like to call it the three G system here for this, its God, Gold and Guns.” (Source: The Glenn Beck Show 11/23/2009)
 “Explain, if I'm right, the policy that the Government has is something that, what is it, the WS2 or something like that policy which is -- what is it, Stu? BW2, which is Bretton Woods 2 which is basically the world needs us; we can borrow; it doesn't matter how much we'll borrow because the world will never disconnect from the world's consumers... Best thing we can do is buy the gold, right?” (Source: The Glenn Beck Program 4/9/2008)
 “There are those in power that want to destroy the dollar or ... the dollar is on life support and they’d like it to stay there. It’s true. Not much that you and I can do about it. Well, there are a few things. You can prepare yourself, that’s what’s next year is a really all about on our program. Preparing yourself and part of that is – or could be – protecting yourself with gold. If you have the money to buy it, protect yourself from an out of control government with gold.”
(Source: The Glenn Beck Program 12/3/09)
 "I think you're nuts. When the system eventually collapses, and the government comes with guns and confiscates, you know, everything in your home and all your possessions, and then you fight off the raving mad cannibalistic crowds that Ted Turner talked about, don't come crying to me. I told you: get gold."
(Source: Politico )
 “Just the other night I was rereading Atlas Shrugged, and in it one of the characters is talking about the value of money and how paper dollars really hold no value whatsoever. They represent your work. The only thing of real value is gold. What you’ve backed that dollar up with. Well, we no longer back our dollars up with gold. If things get dicey, we’re on a banking crisis now, the declining value of the dollar, what will hold its value? Gold. I want you to call 866-GOLDLINE and find out about buying gold. You can buy it as an investment. I buy it really as insurance because it’s the one thing that will have value forever.”
(Source: Goldline radio ad)
Mike Huckabee:
“I’ll bet you’re concerned about the economy and the depreciation of the dollar just like me. That’s why people are diversifying their portfolio with gold, as a way to protect against a falling dollar and future inflation. Goldline has been helping people acquiring gold for 50 years. The people at Goldline will explain just how easy it is for you to buy gold that’s delivered directly to you.”
(Source: Goldline radio ad)
Dennis Miller:
“Hey folks in a perfect world we could print all our own money, buy ridiculous amounts of stuff and live happily ever after. Well life ain’t a fairy tale my friends. Look at the economy, they’re spending more than Paris Hilton on a bad day and it doesn’t get us a tiny dog and a pink purse either. It leads to a lower dollar. What can we do to diversify our portfolio and protect against that falling dollar? Buy gold. Gold prices have tripled in value and they are up more than 40% in the past 2 years. I trust Goldline.”
(Source: Goldline radio ad)
Laura Ingraham:
“With the stock market where it is, volatile, moving up one day, down the next, the trillion dollar budget deficit. And look what’s happening in the banking industry, the government continuing to print money it looks like. It’s important to remember there’s only a finite amount of gold. It makes sense in these types of economic times to seek a safe harbour. And that is gold. I can’t tell you whether gold is going to get up or down. I can tell you however that gold makes sense as part of any portfolio. It serves as a great ballast against inflation.”
(Source: Goldline radio ad)
Fred Thompson:
“Our country is experiencing the worst economic crisis since the Great Depression. Stocks and real estate have lost much of their value and government is spending trillions of dollars in a desperate attempt to bail us out. In these tough times I believe you should own gold. Gold offers diversification so all your eggs aren’t all in one basket. And gold is one of the few investments that is going up every year since 2001. My choice for gold is Goldline.” (Source: Goldline radio ad)"

iVillage Member
Registered: 02-14-2010
Thu, 05-20-2010 - 4:27am

You made an excellent point. Perhaps that is the problem.

Maybe liberals don't understand the idea of researching investments and diversification.

That's why they demand government do those things for us through things like soc sec, because they assume everyone is like them.

iVillage Member
Registered: 02-14-2010
Thu, 05-20-2010 - 4:17am

"No one is marketing Microsoft Windows as an investment. "

It's difficult to do business without it. Regardless, a 700% markup goes beyond profitability right into unjust enrichment.

iVillage Member
Registered: 02-01-2010
Thu, 05-20-2010 - 2:24am
Well...they bought "hope and change" from a snake-oil salesman, so why wouldn't they invest their money because a TV personality told them to?
iVillage Member
Registered: 09-30-2009
Thu, 05-20-2010 - 1:40am
Would YOU invest your hardearned money in one particular "place", simply based on advertisements, and/or the 'recommendation' of some talkshow host on TV?

iVillage Member
Registered: 01-24-2010
Wed, 05-19-2010 - 9:40pm

You are missing the point. Beck is pumping gold relentlessly on his show as a bet the farm to save it kind of investment. Then Beck has Goldline as his exclusive advertiser, and they allegedly are pitching themselves as investment advisors. This is not the same as collecting coins from the US Mint as a hobby, as you claim. If Beck's viewers want to invest in gold, they should buy an investment vehicle, such as a gold etf. I am surprised you do not know the difference between a gold etf and collectible coins from the US Mint. Maybe you have been watching Glenn Beck's show a lot?

As for your comment about Beck not being associated with Goldline, in response to the charges Beck had the CEO of Goldline on his radio show and grilled him about how didn't he Glenn Beck warn the CEO that the CEO better treat his customers right etc etc. Beck is admitting that he is tied in with these guys from the start before he had them advertise on his show. And I am sorry huminter but this is obvious from the comments Beck makes on his show about gold followed by all the ads in lock step with his hype.

Re your comment about people being suckers for making investments based on commercials alone:

1. It wasn't just all those commercials by Goldline. It was Glenn Beck herding people to the advertiser, and Beck even admitting that he vetted the advertiser. (Too bad for his viewers that Beck didn't care that the Goldline was obviously ripping them off with extravagant markups not appropriate for serious investing).

2. I am afraid you have just seriously insulted hundreds of thousands of Glenn Beck's viewers who invested in Goldline's products based on Beck's comments along with the ads. Do you care to apologize?

Want to know the truth about what Beck did? Here it is from someone who actually has long experience reporting on financial markets at Bloomberg and CNBC:

Edited 5/19/2010 10:34 pm ET by littlenote
iVillage Member
Registered: 09-10-2009
Wed, 05-19-2010 - 4:21pm

I really don't follow you. No one is marketing Microsoft Windows as an investment. Glenn Beck is herding his audience, who he obviously treats as suckers, into an outrageously bad investment. The melt value of the coins of the exclusive gold advertiser on his show is something like half of what you pay, and it's marked up even higher than its competitors. That means for the investment to make money, the price of gold will have to more than double from here. For every dollar Beck's viewers put in, they are 50% underwater.

Why would anyone buy ANY INVESTMENT or big-ticket item based on a commercial alone ?

iVillage Member
Registered: 01-24-2010
Wed, 05-19-2010 - 7:09am

"That's your complaint? How do you feel about Gates and his 700% markup for his products?"

I really don't follow you. No one is marketing Microsoft Windows as an investment. Glenn Beck is herding his audience, who he obviously treats as suckers, into an outrageously bad investment. The melt value of the coins of the exclusive gold advertiser on his show is something like half of what you pay, and it's marked up even higher than its competitors. That means for the investment to make money, the price of gold will have to more than double from here. For every dollar Beck's viewers put in, they are 50% underwater.

If Beck were honest, he would simply tell his viewers to look for a good gold ETF: But of course that wouldn't work for him since no gold ETF is willing to pay him and Murdoch huge advertising dollars to be the exclusive gold advertiser on his show.

It's obvious that Glenn Beck is bilking his viewers and treating them like suckers. Maybe that audience will start to wake up to the fact that Glenn Beck is full of it once they realize he is trying to rip them off. Maybe you will even start to smell the coffee!

iVillage Member
Registered: 02-01-2010
Wed, 05-19-2010 - 4:16am

That doesn't count...the left doesn't hate Gates because he's a liberal too. ; )

And what's the problem with promoting gold as an investment? Has anyone shown that it's a bad investment? It's a commodity, so I wouldn't take the risk, but some folks like it. Personally, I could live without the endless "buy gold" commercials on FOX, but Beck is hardly a shill for "gold."

iVillage Member
Registered: 02-14-2010
Wed, 05-19-2010 - 12:01am

That's your complaint? How do you feel about Gates and his 700% markup for his products?