It has been a year now since Congress was investigating certain gold dealers as to the tactics they use in convincing gold and silver investors to purchase certain types of coins that allow the gold dealer to charge 30% or more on the transaction. This would mean the investor would have to earn 40% on their purchase just to break even. Since most people don’t know anything about buying gold and silver, gold dealers easily get away with it. I have been exposing these gold dealers on my site and in a special report, “4 Ways Gold Dealers Rip You Off.”
It was September of 2010 when I was asked by Anthony Weiner’s office to come testify before Congress on what I knew about the gold dealer tactics in convincing investors to buy the type of gold and silver they make a higher profit on. Weiner’s office told me that they liked what I wrote in Chapter 8 of my book, “Buy Gold and Silver Safely” and told me that “everyone needs to read your book.” They told me they would send my book off to the Energy and Commerce department and get back to me the next day as to testifying the following Thursday (at my own expense).
When Weiner’s office did not contact me the following day, I emailed them and asked whether or not they still wanted me to come testify. They emailed back and told me that “the Energy and Commerce department has decided to pass on your testimony.” This begs the question, why? Why would the Energy and Commerce department not want to hear what I had to say when the day before Weiner’s office was saying “everyone needs to read my book?” The answer is simple. I criticized the hell out of Congress in the first four chapters. I as hoping Congress wouldn’t read those chapters so when I got their to testify I would make a mockery out of them. Alas, my plans didn’t work out.
During this time last September, I was also interviewed by Peter Goodman, national economic correspondent for the New York Times as to what I knew about a former company I worked for, Goldline. Of course the NY Times was trying to go after Glenn Beck and his relationship/support of Goldline. Goodman had told me that Goldline had a shrine built to Glenn Beck at their entrance to their office in Santa Monica, California. I have had many people call me and thank me for what I have written about gold dealers and saving them 30% in commissions that some of these companies charge.
I had worked for Goldline for six months whereby I learned all their tactics. Unbeknown to Goldline, I would expose these tactics later in my book in helping people make good decisions when it comes to what gold and silver to buy. I have since started my own gold and silver bullion broker/dealer and charge just a 1% fee above my cost. My goal is simply to get as much gold and silver into people’s hands at the lowest cost possible. “Why pay more” is the question to answer. But unfortunately today, people are still paying more. They are still being told lies by the gold dealers and there is even some new twists that gold dealers are using to convince investors to buy the wrong type of gold and silver for their portfolios.
Flash Forward September 2011
Congress had their hearings last September and that was the end of the witch hunt. Weiner has since resigned from Congress for indecent Twitter pictures he had sent, so no one is left to hound the gold dealers.
Gold dealers can charge whatever they want for gold and silver the same way any car dealership can charge whatever they want for a car. It is up to the consumer to do their homework and know what to buy, which is why I wrote my book “Buy Gold and Silver Safely,” to help guide them. The problem is, the salesman on the phone is very convincing, especially of the elderly, and their high pressure techniques work and the person on the other end of the phone doesn’t know what they just bought.
The NY Times story never came out either. The reasoning is unclear, but Congress and the NY Times quit going after gold dealers and Glenn Beck and the advertisements on Glenn Beck’s show continued. There is a reason these gold dealers can afford to advertise so heavily on these conservative shows. They make tons of money charging 30% commissions or more!
In reality, Goldline hired a big lobbying firm and my speculation is this firm has lobbied Congress to layoff the gold dealers. It worked. So it’s easy for them to hire lobbyists and get what they want. That’s how America works folks! At least so far… Glenn Beck has moved on and started his own venture called Glenn Beck TV and according to their Customer Service department, “Goldline and foodinsurance, etc will be advertising as usual.” Glenn Beck knows where his bread is buttered and his adherence to stick by companies (gold dealers) that sell gold and silver that cost their clients more in commissions is hypocritical to what all else he claims he stands for “Faith, Hope, Charity.”
But Goldline hasn’t given up on capturing the conservative viewer market as they now have hired Sean Hannity who has agreed to use Goldline as his ”exclusive” gold dealer during his show.
How much due diligence have these TV and radio personalities conducted? What gold did they buy from Goldline? Did they pay the 30% – 35% commission for the type of gold that is hawked by Goldline like everyone else has to pay? How much do they get paid by Goldline to be their spokesperson? What conservative talk show host has the guts to say not to easy money?
In Part 2 I will discuss the continued practice by gold dealers to pull the wool over people’s eyes by utilizing certain tactics that while convincing, are just pure speculation in order to earn a higher commission. I will also include a new tactic by a certain gold dealer that is being practiced.
In Part 3 I will reveal all you need to know about buying gold and silver and the right questions to ask before sending any gold dealer your hard earned money.
If you wish to download a free chapter of my book “Buy Gold and Silver Safely,” click on the link below:
[hs_action id=”3681″]
Related posts
About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.