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Doug Eberhardt is the author of "Buy Gold and Silver Safely" and a broker/dealer selling gold and silver bullion at 1% over wholesale cost.
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  • 4 Ways Gold Dealers Rip You Off

    The holidays are around the corner and for some families gathering together, the conversation will turn to the state of the economy and what to do with one's investments. Eventually, because of the heavy advertising on television and radio by gold dealers, the conversation may turn to acquiring gold for one's portfolio. After all, if you listen to Glenn Beck, then you are probably very worried about the state of the economy.

    While there is good reason to be worried about the state of the economy, there is even greater reason to be worried about who you buy your gold from and what kind of gold you should buy. The same is true for silver.

    Much of this information is found in my book, "Buy Gold and Silver Safely." In this book I go into further detail as to what lengths gold dealers will go to in trying to separate your hard earned money from you and putting you into inferior gold and silver investments.

    Gold Dealers Know How to Talk the Talk

    There are many gold dealers who rip you off without you knowing they are doing so. The ironic thing about this is no one seems to be exposing the many gold dealers who do this as frauds.

    In fact, I tried to let congress know of what these gold dealers were up to by pointing them to Chapter 8 of my book, the chapter that exposes gold dealer tactics. Congress actually wanted me to "definitely" testify against gold dealers back in September of 2010, and then the next day, after my book was sent to the Energy and Commerce committee for review, decided against my testimony. This was after they said to me "people need to read what you have written. It's exactly what we have been speculating."

    How do I know what Congress wanted to hear? I worked for one of these gold dealers that they were investigating for six months back in 2005. But what I find fascinating about this whole ordeal where Rep. Anthony Weiner's office was trying to discredit Glenn Beck by attacking his advertisers, primarily Goldline International, is that nothing has been said of it since. Goldline had gone out and hired a lobbying firm and that was the end of that I guess. Weiner's office has been silent on the issue since September as it seems to have been swept under the rug.

    Even the NY Times, who interviewed me for a story on Goldline and Glenn Beck, has not printed that article critiquing the industry. If you ask me, they are all in it together, keeping the truth from you, the consumer! I guess they would prefer you fall prey to unscrupulous gold dealers who profit from your ignorance about buying gold and silver.

    The Purpose of Writing This Article

    This article addresses the 4 ways gold dealers rip you off.  It is meant as a point of discussion around the dinner table over the holidays in protecting individuals, mother's, father's and grandparents from making big mistakes in buying gold and silver.

    Instead of ignoring conversations about investments this holiday season, reach out and help those who are considering investments in gold and silver with this information so they don't make the same mistake that countless others are, costing them 30% or more of their investment. Help your families keep the wealth rather than give it to greedy gold dealers. It's important more now than ever to join the conversation and do what's right for the family.

    As 2008 - 2009 showed, the advice given by financial advisors failed everyone once. But physical gold and silver investments did not fail and haven't now for 10 straight years. Get educated on that for what you do not know about gold and silver. Learn the truth before you go trusting someone on the other end of the phone who will feed you the following lines of mistruth and myth.

    If you are reading this article after the holidays, the gold dealer tactics will still be in play. It's what keeps them in business and able to afford the expensive advertising on television and radio.

    The 4 Ways Gold Dealers Rip You Off

    Gold Dealer Rip Off #1 - Threats of Confiscation

    This is the number one tactic gold dealers will use in telling a story about how a certain type of gold could be confiscated, while another type of gold wouldn't. In fact, I dedicated an entire article to it called; Gold Confiscation Won’t Happen Here and added an analysis of silver confiscation.

    It is an easy subject for gold dealers to talk to people about because not nine in ten people know anything about it. So armed with a little history, it's easy for the gold dealer to tell a story and convince most unaware buyers of gold to purchase the more expensive type of gold they recommend; the kind they claim can't be confiscated.

    All you need to know is the Executive Orders that once directed the government to confiscate anything more than $100 of gold back in 1933, are not in existence today. Every single Executive Order has been rescinded.

    But that won't stop gold dealers from still trying to claim the government can confiscate certain gold and not other gold that has a premium associated with it. They will claim that gold and silver that have a "recognized special value to collectors of rare and unusual coin" will not be confiscated. This is pure baloney.

    While it is true that these coins may be collectors’ coins, it is irrelevant because again, all executive orders pertaining to confiscation of gold have been rescinded.

    If a gold dealer uses this tactic, just hang up on them. Tell them, "I've heard enough" as the next words out of their mouth will be an attempt to sell you gold or silver that is highly marked up compared to the spot price of gold, to the tune of 30% or more in some cases. Even 10% of a mark up is too much to pay.

    Technically, the government could confiscate anything they wanted to with existing laws in place. Would they try and do so by knocking on everyone's door and searching homes, boats and motor homes for their gold coins, or would they just talk to the custodians of the Exchange Traded Fund (ETF); GLD and ask them to hand over their tonnes of gold?

    Before any potential confiscation were to occur in America, they would have to repeal the second amendment of the Constitution first. Don't buy expensive gold because of any worries about what may or may not occur in the future. Be smart with your money.

    Gold Dealer Ripoff #2 - European Coins Will Give You More Gold For Your Money

    This ploy was the number one question gold dealers would ask a potential buyer of gold. They would ask the question; "Do you want a coin that is rare and pretty, or one that gives you the most gold for your money?" Most people won't realize it, but it is a trick question as either answer the gold dealer makes their large commission.

    If the potential customer answers rare or pretty coin, which almost never happens, they end up with a St. Gauden or some pre-1933 coin that has a high premium to spot associated with it. These coins may or may not appreciate more than the spot price of gold moving forward. More importantly, the premium one pays for them could disappear as the U.S. currency falters or defaults. This means that when it comes time to selling it, buyers will only be interested in the gold content, not the rarity.

    But worse for the potential customer is the fact that if they answer, "most gold for your money," the gold dealer will push them toward European gold coins like the Swiss francs, British Sovereigns or French Roosters. These European coins do give more gold for your money, but only compared to the rare coins, not to gold American Eagle bullion coins. This is the dirty little secret about how gold dealers profit from those who call in to buy what they think is bullion gold, but turns out they pay a 10% to 30% or more premium to acquire it.

    I go into more detail with this tactic in "Don’t Buy European Gold or Rare Coins – Gold Dealer Ripoff And Media Bias Exposed."

    Gold Dealer Ripoff #3 - First Strike or Early Release Coins

    Another ploy gold dealers practice is to get people to buy their bullion coins that normally have a 2% to 10% markup at a 30% to 100% markup (some gold dealers will mark them up for less). What they do is get the new American Eagle gold coins produced at the U.S. Mint that come out of production early each year certified by National Guaranty Association (NGC) as a higher value collector’s coin that may someday be worth much more.

    They may call these coins “First Strike” and have their salespeople tell prospective buyers that these coins were the first minted for a certain year (the first 100,000, let’s say) and therefore are considered to be more valuable than the coins minted later in the year.

    What the gold dealer will do is buy the American Eagle gold bullion coin from the U.S. Mint for the normal 3% or so markup in price over spot. They will take this coin and send it to NGC and have it graded. The cost to grade the coins might be $50 each.

    The coins will come back graded an MS 69 on average, with some coming back as a MS 70. Now the gold dealer can sell these coins with a 100% or more markup over the spot price of gold. This is pure genius from the perspective of the gold dealer, if you ask me. Take a product worth x and sell it for 2x through the telling of a fable.

    However, since there was no way to prove the coins were “First Strike” coins, NGC and the gold dealers had to regroup and subsequently came up with the new description “Early Releases,” which they use today.

    From the NGC site:

    To qualify for Early Releases designation, all coins must be received by NGC within 30 days of their release by the US Mint, or documented as being received by an NGC approved depository within this same 30-day period. Coins being sent directly to NGC do not need to be accompanied by original packaging or shipped in sealed mint boxes, but must arrive within the time period described above. The Early Releases request must be noted on the submission invoice, and additional service fees apply for the special label and designation verification.

    The ability of gold dealers to profit on such a story is in my opinion one of the reasons the U.S. Mint keeps running out of coins. What gold dealer wouldn’t want to double their money at the expense of the buyer?

    Gold Dealer Ripoff #4 - Just Get the Money In-House and Let a Senior Sales Representative Take Over the Sale

    Another tactic gold dealers will use is if a caller is adamant about buying bullion coins like the American Eagle 1-ounce bullion coins, they will write up the order, but can’t confirm the price until they receive a check or have the money wired in (the check of course would have to clear first). Once the gold dealer has the money in-house, they will call the buyer back and attempt to switch them to the rare collectors’ coins. If that gold sales representative fails to do so, they will get one of the in-house seasoned pros on the line to hardball you, scare you, play upon all your fears about what’s going on in the economy and how the government is going to someday take your gold from you, in trying one last effort to get the sale. Their sales pressure is immense.

    The senior sales representative gets on the phone to try and talk the buyer out of purchasing gold bullion coins and make them feel guilty about their purchase, even to the extent of yelling at them or calling them an idiot. Then they will put the buyer on hold for five minutes for no reason if they don’t get their way. They will treat the bullion buyer like dirt, so the buyer needs to expect this treatment and keep asking “when will I receive my coins?” Even then, make sure the coins received are the coins ordered and for the price quoted by checking the paperwork.

    This tactic is used quite often on IRA or Roth IRA rollovers or transfers where funds are received by the new custodian. The sale of the gold and/or silver has to be conducted through a gold dealer and the sales person who makes the trade locks in the price. Unfortunately, many of these salesmen can charge up to 30% for even bullion coins that are acquired with your IRA. They know that once they have the funds in house, they have more control over the sale.

    Not all gold dealers are alike, and if an investor is prepared with the right questions, they can separate the good ones from the bad ones. Caveat emptor!

    Other Points of Interest When Considering What Type of Gold to Buy

    Many gold dealers won't buy back gold and silver bars. This means you may have to pay the extra cost to have them assayed when it comes time to selling.

    Gold dealers will use every trick in the book to get potential investors to forget about investing in gold bullion and end up selling them either a pretty coin or something else that won’t be easily liquidated if the U.S. dollar were to decline to new lows or default altogether, except for the gold content value of the coin.

    While rare coins could go up in value beyond the gold content, as the economy deteriorates and it comes time to liquidate one’s collection, most buyers won’t care about any collector’s value. All they’ll want is what the gold ounces will buy them in the marketplace.

    What investors need to do is buy bullion gold with their Federal Reserve Notes today, to hedge their U.S. dollar based portfolio risk consisting of U.S. stocks, U.S. corporate bonds, U.S. government bonds, U.S. treasuries and CD's at the bank. They need to possess some real wealth so they can still go buy food, medicine and make ends meet in the future.

    I may buy a few coins because they are aesthetically beautiful, but not as an investment. Gold and silver bullion are all you need.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Additional disclosure: Long Physical Gold and Silver
    Dec 22 3:03 AM | Link | 2 Comments
  • Gold Confiscation Won't Happen Today

    Over and over you’ll hear the salesmen at gold dealers claim that you need to buy rare, numismatic or worse, European coins like Swiss francs, French Roosters or British Sovereigns, to avoid government confiscation. What they are really saying, is “buy our more expensive coins so we can make more money.”

    Confiscation Tactics

    The following is an excerpt from my book; “Buy Gold and Silver Safely,” that goes into gold dealer confiscation tactics and other means gold dealers use to get you to buy highly marked up coins.

    “Gold dealers will make certain statements that play on the ignorance of those who call in after hearing an ad on the radio or TV. Gold salespeople will say things like, “Are you aware that in 1933, the government took gold coins away?” Most people don’t realize this is true, which will be explained in a moment.

    The gold salesperson will then ask “What kind of gold do you want, the gold that can be confiscated, or the gold that can’t?” Or word the question this way: “Do you want government gold or private gold?” “Government gold” would be the bullion gold like American Eagle gold bullion coins and “private gold” would be the coins like the European coins or others with a high markup over the spot price of gold.

    Some companies will even mention confiscation in their literature. The literature might say; “No confiscation…. yet another advantage over gold bullion coins: rare coins are not subject to gold confiscation laws, due to their historical status as a collector piece.” Or they’ll say; “Investment metals offer different premiums and benefits, such as government reporting and protection from confiscation.”

    Many gold salesmen will try and convince you that if you buy gold bullion coins, the government will confiscate them like they did in 1933 with an executive order. They’ll say that pre-1933 coins didn’t get confiscated and if you buy these pre-1933 coins, the government won’t confiscate them from you today. This is pure speculation on behalf of the gold salesperson.

    Yes, gold was confiscated in 1933. However, those laws and executive orders are no longer valid. They have all been rescinded. Don’t let gold dealers convince you otherwise.

    The Truth About Gold Confiscation

    The following explains the facts of the gold confiscation. The only people who will probably read this in detail are gold salespeople, who won’t be too happy about their hand being exposed. My guess is quite a bit of their profit comes from this one tactic alone.

    Executive Order 6102 was signed by President Roosevelt on April 5, 1933, “forbidding the Hoarding of Gold Coin, Gold Bullion and Gold Certificates.”

    Executive Order 6260, August 28, 1933 amended 6102 by saying:
    “…no returns (of gold to the government) are required to be filed with respect to Gold coin having a recognized special value to collectors of rare and unusual coin;”

    Gold salespeople will say there was an amendment to this executive order on December 28, 1933 “Exempting Pre-1933 Gold Coins from Confiscation.” No such executive order amendment from that date exists, although there were other amendments to Executive Order 6260.

    Finally, Executive Order No. 11825, written December 31st, 1974, revoked Executive Orders 6102 and 6260.

    So what does this mean? It means no executive order exists today to confiscate anyone’s gold.

    Many gold dealers will say the following is of significance regarding which coins are considered “collectible” and thus would be exempt from confiscation:

    Title 31 of Code of Federal Regulations Sec. 54.20 Rare Coin:
    (b) Gold coin made prior to April 5, 1933, is considered to be of recognized special value to collectors of rare and unusual coin.

    While it is true that these coins may be collectors’ coins, it is irrelevant because again, all executive orders pertaining to confiscation of gold have been rescinded.

    These collectible gold coins should not be bought to be utilized for purchasing goods and services at some point in the future, period. This includes all European bullion coins because they will be difficult to use as a medium of exchange, as they are not highly recognizable in the United States.

    There’s even one gold dealer out there, Goldworth Financial, that outright lies about what the U.S. code says about confiscation and puts it right on their website:

    “Today the Federal Government still maintains the power to confiscate gold and Silver through: Title 12, Chapter 2, Subchapter IV, Section 95a, which provides in part: “During the time of war, the president may through any agency that he may designate, licenses, or otherwise—(A) investigate,
    regulate, or prohibit, any transactions in foreign exchange transfers of credit or payments between, by, through, or to any banking institution, and the importing, exporting, hoarding, melting, or earning of gold or silver coin or bullion, currency or securities.”

    Well, guess what? Title 12, Chapter 2, Subchapter IV, 95a exists, but it says none of what this gold dealer would have you believe it does.

    In reality, the government could confiscate anything they wanted to in times of “economic emergency.” Whether it is gold, stocks or your home, the laws and regulations are in place for them to do so… in the country’s best interest, of course.

    Making an investment decision on a “what if” scenario makes no sense whatsoever, especially at a cost of 30% to 50% of the initial investment.

    Making an investment decision on known facts of what our Congress, Treasury, Federal Reserve are doing in destroying the economy and monetary system makes perfect sense.”

    What Is A More Likely Scenario for Government Confiscation of Gold?

    If you really think about this for a moment, the government decides it wants to confiscate some gold because of economic troubles. Will they send the police and troops out to everyone’s doors and check their houses, safe’s and bank safety deposit boxes? Or will they with a stroke of a pen, take the quasi-gold known as the ETF; GLD? Would they face a fight on the street with a citizenry who are armed, or take the easy route and take the millions just sitting there in gold ETF's?

    I can flat out say that a gold dealer who sells these rare and semi-rare coins is in the business of making a larger profit off of fear tactics like confiscation, than a gold dealer who sells just bullion coins. But you won't find too many gold dealers that sell just bullion.

    In fact, you won’t hear a gold dealer who sells just bullion gold and silver coins and bars ever advertise on Glenn Beck’s radio or television show, or any other show for that matter. Why? Because it’s just too expensive. There is not a high enough mark-up on bullion gold and silver to allow any profits to allocate towards advertising on these programs.

    Will the Government Come After My Silver?

    This is a subject rarely addressed. The government didn’t confiscate silver in 1933, only gold. But silver was money at that time too. In fact, the bankers had already succeeded in demonitizing silver because they didn’t like the fact that those who had bulk silver could take it down to the mint and have it coined into standard silver dollars to spend. The bankers weren't in control of this monetary exchange, and they didn't like it. Gold became the monetary unit most used with the further discoveries in Alaska, but silver still remained money.

    After gold was confiscated in 1933, here is what Roosevelt had to say about silver in a message to congress, Jan. 15, 1934;

    “The other principal precious metal— silver—has also been used from time immemorial as a metallic base for currencies as well as for actual currency itself. It is used as such by probably half the population of the world. It constitutes a very important part of our own monetary structure. It is such a crucial factor in much of the world’s international trade that it cannot be neglected.”

    Silver coins continued to circulate in the U.S. with the production of 1-ounce coins ending in 1935. Silver dimes, quarters and half-dollars continued to circulate until 1964, when silver was removed from all dimes and quarters, and half-dollars’ silver content was reduced to 40%. Flash forward a few years and in 1968, the government refused to pay any more silver to bearers of Silver Certificates.

    Many today may not view silver as money, but it has been viewed as money since the time Judas was given 30 pieces to deliver Jesus to the high priests. China was never on a gold standard, but a silver standard. Even making sivler more appealing is the fact that like gold, silver too has acted inversely to the U.S. dollar since 1997 as seen in the following chart (Note: silver has moved significantly higher the last year since the ending point of this chart).

    If the government decided to confiscate silver today, would they require every citizen to turn in their Thanksgiving dinner settings? Hardly. Your silver is safe. But just in case one believes they will come after gold, then silver makes a perfect investment alternative to counteract the U.S. dollar decline, and insure your portfolio’s U.S. dollar risk.

    Confiscation Scare Tactics Still Continue Today

    I just did a Google search for gold confiscation today and one of the companies under investigation by the Energy and Commerce committee, the FTC and the Santa Monica city attorney, Goldline International, because of the findings by Rep. Anthony Weiner, D, NY, is still using this scare tactic to get people to buy a certain type of marked up gold.

    I was asked by Weiner’s office to testify at those gold dealer hearings in September, but after my book was sent to the Energy and Commerce committee, they decided to pass. More than likely this is because I wasn’t kind to congress in the first four chapters of my book. I was hoping congress wouldn’t read those chapters and only the chapter dealing with gold dealer tactics in ripping off unsuspecting buyers.

    Either way, sooner or later, the American public will wake up to this gold confiscation nonsense. One needs to buy gold based on it being insurance for their U.S. dollar based portfolio (U.S. stocks, U.S. corporate bonds, U.S. government bonds), buying the highest amount of gold for the least amount of premium. They don’t need to pay 30% commissions or more for “what if” scenarios. But this is exactly what thousands of uninformed people are doing after hearing their favorite talk show host recommend these companies.

    Disclosure: Long Physical Gold and Silver Bullion
    Oct 21 12:42 PM | Link | Comment!
  • Glenn Beck vs. Rep. Anthony Weiner, Who's Right? An Insider's View Into the Gold Dealer Industry

    The investigation into Goldline International, a gold dealer out of Santa Monica, California, and other gold dealers will come to a head on Thursday, September 23rd when a hearing of the Subcommittee on Commerce, Trade, and Consumer Protection convenes to discuss legislation that would regulate gold-selling companies. This was announced recently through a press release from the office of Rep. Anthony Weiner, D, NY.

    The purpose of the meeting is to "propose legislation that would force Goldline and companies like it to fully disclose their dishonest business practices."

    There has been much discussion over these issues ever since Rep. Weiner called out Glenn Beck and his support of Goldline International via Beck's radio show where Goldline is the sponsor. Many other gold dealers, as well as Goldline, advertise during Glenn Beck's one hour television show.

    Weiner has laid out his case against Goldline in particular through a recent document published on his site  "As Seen On TV: An Investigation of Goldline International."

    Weiner's Witch Hunt Started as a Cash for Gold Inquiry

    This investigation by Weiner's office started when several complaints surfaced about the "Cash for Gold" outfits that were paying people a very small price per ounce for their gold jewelry. These are the places you'll see when you are walking in the mall with the signs out saying "We Buy Gold" as well as the various companies that advertise on television.

    What these companies do to confuse the seller of gold items is offer to buy the gold in grams. Offering $7.50 per gram for gold comes out to about $240 an ounce when gold is selling north of $1,200 an ounce. The one who has turned over the gold jewelry, more than often, isn't the wiser as to how they were just ripped off. Many are just happy they received some cash for their gold.

    But instead of going after these gold buying companies that rip people off, Rep. Weiner's office uncovered what Goldline had allegedly been doing to its customers by selling them what they call "semi-precious" gold coins with a high mark up.

    This is the purpose of the legislation Rep. Weiner would like to see passed; to regulate those who try and mark up a product at what is deemed by congress to be too high a spread from the actual cost to manufacture--all to protect the investor of course.

    Going After Glenn Beck

    It would of course make for a better story if Rep. Weiner, a democrat, could tarnish the reputation of Glenn Beck, along with many other promoters for Goldline, including Mike Huckabee, Fred Thompson and Laura Ingraham, all from the conservative side of the aisle.

    They will of course deny this is the case. They denied it to me.

    Maybe Weiner doesn't know this, but there were those on the left who promoted these gold companies too, including Randi Rhodes, Ed Schultz and Stephanie Miller. It just turns out conservatives were better targets (easier to sell to) and thus conservative radio and television offered a better return for advertising dollar spent.

    Insider Information; I Worked for Goldline International

    I was recently interviewed for a forthcoming article in the NY Times to come out this Sunday, September 26th. The reason I was interviewed was because I worked for Goldline International. So not only do we have Weiner going after Beck, but also the NY Times in an attempt to try to make the connection to what they perceive to be a gold dealer that allegedly "rips-off" their clients. I was asked by the reporter what I thought of Weiner's accusations and I told him he's right and he's also wrong.

    Subsequent to the NY Times interview, I approached Rep. Weiner's office because my book, "Buy Gold and Silver Safely," which exposes all of the gold dealer tactics, but at the same time educates the buyer of gold, might be of benefit to their investigation. Yes, I wanted to testify in front of Congress. Silly me.

    Congress Was Eager To Hear What I Had To Say

    I directed them to Chapter 8 of my book which explains all of what I did while working at Goldline and spoke to their tactics in pushing certain products with higher premiums, with a hope Weiner's office would jump at the opportunity to have me testify. It worked. They wanted me to testify.

    They told me what I wrote verified everything they were doing in going after gold dealers and even went so far to say my book was what people need to read about the right way to buy gold.

    In the chapter on gold dealers, I give details on the various tactics they would utilize. For example - how the threat of confiscation was used to steer investors a certain way with questions like these;

    “What kind of gold do you want, the gold that can be confiscated, or the gold that can’t?”  “Do you want government gold or private gold?” "Government gold” would be the bullion gold like American Eagle gold bullion coins and “private gold” would be the coins like the European coins or others with a high markup over the spot price of gold.

    There are many more tactics related to confiscation I reveal, like the Executive Orders that were passed at one time or another. Rep. Weiner had claimed at one point that gold was never confiscated and Glenn Beck on his TV program showed the Executive Order proving gold was in fact confiscated. Of course Beck left out the part that all the Executive Orders related to confiscation have been rescinded.

    In reality though, according to the Gold Anti-trust Action Committee (OTCPK:GATA), the Treasury claims power to seize gold and silver -- and everything else.

    Being Called To Testify;  Energy and Commerce Committee Just Say No

    After being told they definitely want me to testify, my book was handed over to the Energy and Commerce Committee. They decided to pass on my testimony. Why? Because they actually read what else I had written in the book; primarily the first four chapters.

    My Stealth Plan Gone Awry

    In my hopes of these people in congress doing what they do best, not reading bills, I was hoping to be able to slip into the hearings and really give them a piece of my mind. I would have made a mockery of the hearings in their attempts to pass more regulations, let alone had a field day with their understanding of gold and our monetary system.

    As it turns out, someone in the committee must have skimmed through thouse first four chapters of my book which criticize the financial services industry, the banking industry, the federal reserve system, and of course, both sides of the aisle in congress and their adherence to Keynesian economics; the reasoning behind an ever weaker U.S. dollar and the need to be diversified into gold and silver. They didn't want the public to hear the truth Austrian economists have known all along. So they passed on my testimony.

    The best laid schemes of mice and men / Go oft awry.

    --Of Mice and Men

    How ironic that this saying comes out of the era of the Great Depression.

    Who Is Right, Glenn Beck or Anthony Weiner?

    In answering the question, who is right, Glenn Beck or Anthony Weiner, they are both wrong. Glenn Beck is wrong about supporting a company that, among other things, pushes bullion coins at higher prices than what could be had at a competing firm. Rep. Weiner is wrong in wanting to regulate an industry that only needs an informed citizenry to weed out the bad companies.

    That's why I wrote the book, to help people know what to do, before buying gold or silver. My original online version of the book exposing the gold dealers was public information in May of 2009. I tried to get the Christian Science Monitor to allow me to write an article on the issue of gold dealers and they didn't reply. I tried the LA Times and they too didn't follow up.

    The problem is, many of these media outlets receive the advertising budget of these gold dealers and they are not about to criticize the hand that feeds them.

    But it is our entire education system that is lacking in an understanding of gold, and this includes the financial services industry who mistake the U.S. dollar as a "risk free" asset, when it clearly isn't. There just aren't too many ways for the average person to learn about gold.

    Gold Dealers Don't Need To Be Regulated

    You don't need a hearing to go after gold dealers, you need a hearing to go after the Federal Reserve that wants you to believe in a piece of paper that has 39 short years without a relationship to gold. Congress needs to hold a hearing and go after themselves as they have been allowed to spend our nation into oblivion during those 39 years. But congress will never do such a thing.

    People are becoming more and more fed up with congress, but nothing will curtail congressional spending until either a constitutional amendment is passed to limit them to spending only what they take in (tax receipts) or there is a return to the sound money of the Constitution.

    If congress is going to go after gold dealers, then they might as well go after car dealers, jewelry stores, or how about the insurance industry and the sellers of some of those early withdrawal penalty annuities? Any one of these products returned after a week of owning and you'll get less than what you put in. And while congress is in search of full disclosure by gold dealers, how about proving there is still gold at Fort Knox?

    This Legislation, If Passed, Will Come Back to Haunt Congress

    This is a political move, nothing more. They'll say its about protecting the investor, but its definitely related to going after Glenn Beck and other conservatives. But here's where congress will bite their own hand if this legislation passes. In exposing the mark-up of certain coins, investors will increasingly want American coins over these European coins sold by many gold dealers. The problem with the European coins is their value isn't as readily known to the U.S. public.

    What this means, is the demand for U.S. American Eagle one ounce bullion gold coins will skyrocket. Of course sales have already skyrocketed with the price of gold moving higher, year after year and currently at its all-time high. This has already resulted in the U.S. Mint struggling to keep the supply of coins available to meet demand, as required by Public Law 99-185. According to this law, the U.S. Mint has to keep on hand coins “in quantities sufficient to meet public demand . . .”

    While gold may be due for a pullback at present, a holder of physical gold cares not that it falls 20% on its way to 100% or higher in gains. An investor in gold and silver needs the insurance these metals offer to counteract that portion of their portfolio that is U.S. dollar based (U.S. Stocks, U.S. Corporate and U.S. government bonds). They also need to possess some physical gold and silver as insurance against default.

    Glenn Beck loves to tout history. How about the short history of 39 years of Federal Reserve Note existence versus over 5,000 years of gold as money.  In the rush to real wealth, gold wins over paper, as always.

    People want the truth and just need to educate themselves on the right type of gold and silver to buy. They won't find the truth by listening to radio and TV personalities or from hearings in congress when congress themselves doesn't want the truth to be known; even from an insider.

    At least now, people will know the truth.

    Disclosure: Long Physical Gold and Silver Bullion
    Sep 21 6:37 PM | Link | Comment!
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