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Will Glenn Beck's TV Antics Tarnish the Gleam of Gold?Vincenzo Desroches As Glenn Beck’s television ratings hit new lows, his vociferous support of gold as a hedge against inflation has recently drawn fire for all the wrong reasons. Rep. Anthony Wiener (D-NY) issued a scathing report this past Tuesday that attacked Goldline International, a California-based gold dealer and its “unholy alliance with conservative pundits to drive a false narrative”. Wiener went further to state publicly that, "This really is about the consumers of Goldline's products and many of them take the rhetorical excesses of a Glenn Beck and his like when they talk up gold and then immediately go to the advertisements to get ripped off, there's no other way to put it. When you're advertising you're going to invest in gold and you wind up getting sometimes 200 percent more than the melt value of gold, that's just a bad deal. The only way for you to keep up is for the cost of gold to go up 200 percent before you put down the phone." Glenn Beck was quick to counter on his national news and radio networks, but the issue for the gold industry has nothing to do with Glenn Beck or his conservative brethren. Although they tout the wonders of gold as an investment, the issue is that there are a lot of hucksters out there ready to fleece you and your family of its savings with sales pitches bordering on investment fraud. The FBI pegs securities and commodity fraud at $40 billion in losses annually, and those are for the illigitimate criminal acts. Mr. Wiener has had enough. The claims in his report against Goldline are clear and to the point:
"Goldline rips off consumers, uses misleading and possibly illegal sales tactics, and deliberately manipulates public fears of an impending government takeover - this is a trifecta of terrible business practices," said Weiner. Have any of these televised antics actually tarnished the reputation of gold in the eyes of investors? Apparently not. Gold had a record year in 2009 and has contined that growth path into 2010, outstripping all previous record highs in the process. As Greek debt issues distorted stock values and forex charts, gold was the major beneficiary as the expected flight of capital to safe havens ensued. Yes, gold is presently in a correction phase, as are all other trading markets, but many gold analysts are suggesting that all economic recovery signs are pointing to a “perfect storm” of inflationary pressures down the road. Gold has always been prized in tough economic times by investors for its intrinsic value and its ability to hold that value when inflation drives up prices. Stock portfolio managers use it to hedge the performance of their funds for this very reason. However, as the world climbs out of its economic doldrums, commerce will heat up, along with demand pressure for commodities. The inevitable inflationary spiral will be set in motion, and with Central Bankers reluctant to raise interest rates, timeframes will be expanded. gold prices can only be bolstered in this type of environment. What is the safest way to invest in gold? Most gold dealers claim to hear this question all the time. There is no “right” answer. It depends on your investment goals and objectives. The advent of exchange-traded funds, ETFs, have made gold ownership easier, but each fund manages its assets in different ways. The best advice is to talk to your investment broker. He is independent and most likely aware from experience what the most effective methods are. Unfortunately, gold attracts its fair share of frauds and scams. Be sure to do your due diligence before commiting your precious capital. Gold has always been treasured, since the times of King Tut and before. It never corrodes or loses its natural appeal, even when the antics of television personalities bring into question the actions of unscrupulous sellers. As for its future, buying gold is always a safe bet when done correctly. ### Vincenzo Desroches About the Author: Vincenzo Desroches, started a financial and forex journey as a young entrepreneur and through years of self-taught investment. However, his interest in economics has been a lifelong hobby, fulfilled through various books, magazines, and courses. Chenzo has added to his knowledge of international economics in business trips around the world including Europe, Asia, and Africa. Currently, he is writing a small business book while continuing his exploration of economics together with all of his prodigious interests. 321gold Ltd |
