Fools Gold: Inside the Glenn Beck Goldline Scheme (Barry Ritholtz)

[swag]

http://www.ritholtz.com/blog/2010/07/glenn-beck-goldline/

Goldline International is under investigation by the Santa Monica City Attorney’s office, jointly with the Los Angeles County District Attorney’s office, as well as being the subject of a separate investigation by Congress into the possible criminal practices. The firm has been the subject of an ABC Nightline News Exposé, as well as an investigation by NY Congressman Weiner).

Jess Bachman, who did several of the fantastic illustrations for Bailout Nation, turns his graphic expertise to the Glenn Beck/Goldline endorsement scheme:

[Vinnie From Indy]

1. Genghis Kahn had the right solution for Glenn Beck

The Kahn had molten gold poured into the mouth and ears of a governor that had killed his ambassadors and stolen his gold.

[dem mba]

2. nice con

mainly because they're targeting Beck viewers. a fool and their money...

[War Pigs]

15. ssshhhh don't tell anybody beck, limpballs, orally, etc. are

just another tax on the stupid, six-fingered stump jumpers lol!! Think economic darwinism :) "The blacks are coming for your gold, buy it from me and it'll be alright" Too damn funny!! :bounce:

[HillWilliam]

3. If truly there were an apocalypse

y'can't eat gold. Who'd have money to buy it off you and who'd want it. If things went to hell, people would want food, water, and shelter. Gold would be about the last thing salable or useful.

Just goes to show that PT Barnum was right. Bekkkerheads are such pigeons and Beckkk knows it.

[SnakeEyes]

9. Regardless of the beck/goldline sceheme...

Umm your post is ridiculously off the mark. Precious metals, such as gold, are exactly the kind of thing that historically have been the best thing in a worst case scenario.

People want food, water, and shelter.. which still will not be free or at least will not necessarily be in abundance. So you still have to pay for things. In a worse case scenario where paper money has been completely devalued, you have hyper inflation, and the rest of the world doesn't trust your currency and wants nothing to do with it, the money you hold right now is going to have very little value.

You will want something with a real value. Gold has a real value as opposed to paper money when confidence is destroyed. The intrinsic properties of precious metals give them actual value. A government can't just print more and one can't make counterfeit gold. Banks still hold gold in the event currency goes to hell. It can still be sold to those that use gold and on the world markets.

If your holding gold it will be far more valuable than the worthless, devalued, paper dollars. You'll be able to take gold to a bank to exchange for money though in reality you'd probably be better off using it as currency to buy things and gain access/advantage in this worst case scenario. Sellers/people will prefer gold to paper currency. The paper currency can continue to lose value. Give them a dollar now and at the end of the day it may only be able to purchase what cost .75 at the time you gave them the dollar and now costs a dollar as hyper inflation continues and prices rise.

[DFW]

13. Even if you believe in gold implicitly, the post is right on the mark

The post is not about whether or not gold is a sensible investment. The post is about whether or not
buying gold from Goldline & Beck is a sound investment. If Apple Computer is quoted on the NASDAQ at
$250 a share, and you have to pay a legitimate broker $100 to obtain ten shares, then your net cost is
$2600 for ten shares. So, if Glenn Beck says buy through HIS broker, who will charge you $1500 instead of
$100, does that mean Apple is a bad investment? No, all it means is that Glenn Beck is touting a crooked
broker.

So it is with Goldline. They are charging something like an 80% premium on the French 20 franc gold coins
with the rooster on them. Any legitimate dealer will charge a maximum of 15% for these coins, and they
are very plentiful--extremely so. Goldline might not tell you this, but over 70% of the 20 franc rooster
coins are official restrikes, made by the French government in the 1950s to replace gold coins they melted
down for ingots during the First World War to pay for their war effort. Most of the coins Goldline (or any
other dealer) will offer you were not struck in the years on the coins, and are therefore not as old as their
dates indicate. Only an expert coin specialist can tell the difference between an original and a restrike.
But that's a minor detail.

The major detail is that Goldline is selling their victims coins at prices far above what any legitimate
gold coin dealer would charge for the same coins. This is NOT a good investment. It is a very bad investment.
You may think gold is a solid investment at $1160 an ounce. You may even be right, I don't know. But when
gold is $1160 an ounce, you might expect to pay $1200 or even $1250 (pro rata) an ounce for gold in coin
form. Paying $1900 an ounce, however, when the gold price is $1160, is a very bad investment unless you are
looking for numismatic value, which is a whole other ball game, but THIS is what the post is about, not gold
per se. Heritage in Dallas would charge about $250 or less at today's $1160 gold for a gold French 20 Franc
rooster coin. Goldline would charge around $375 for the same coin, some of which will go into Beck's pocket
for recommending you to buy from Goldline. Heritage is a wholesaler of this stuff, and they don't handle this
particular kind of coin except for specific orders from other dealers, or very large retail orders, so don't
go calling them. I just used them as an example, as I know them, and asked their gold department what they would charge.

[bergie321]

10. That is why

You then immediately sell your gold from goldline to cash4gold and use the proceeds to buy survival seeds. Don't you watch the Glenn Beck show?

[HillWilliam]

12. .

:rofl:

[Dr.Phool]

4. Glenn Beck should be the give-away that they're crooks.

A couple of years ago, I wanted to buy some Krugerrands. None of the coin shops around had much of any physical gold. I stumbled across Goldline, and called them. It seemed like a reasonable premium to pay, but the guy just kept trying to sell me this other shit.

I told him I'd think about it. Then when I checked their website, I saw the prominent "AS seen on Glenn Beck" banner. I said fuck them.

Then I ran across Kitco. Smaller premium. No salesman. Order online at the price when you executed the trade. Not on delivery like Goldline wanted.

Goldline kept trying to sell me that shit for 6 months. I told them that I don't do business with any of Becks advertisers.

[peacetalksforall]

5. I would think they would be smarter - if you have a trick up your sleeve when ordering,

you would not make your target market conservatives - which is obviously their market since they use FOX, Beck, Hucakbee, Thompson. You would think that they would create a trick up their sleeves to hit at Democrats?

It also makes one wonder if there is a kickback for the RNC or a the slush fund for paying off those who help them steal votes.

[peacetalksforall]

6. I hope Thompson and Huckabee are called to testify, but I'm sure there are plenty of

claimants to hear.

What a great visual. Excellent. I highly recommend.

Makes me want to read their book about the bailout.

[swag]

8. Ritholtz's "Bailout Nation" is excellent.

A nice companion piece to Michael Lewis' "The Big Short."

[peacetalksforall]

7. All the stuff about Beck and Goldline was going over my head - it is painful

to see his face and hear his voice and I could just imagine it from the headlines. This is the first thread I've read about the scandal and it probably is the only one I read because it says everything one would want to know, including the Weiner led investigation. I got the big picture, the lies, the details in one quick kick of reading. Thanks for this thread, swag.

[Moostache]

11. Goldline is the new lottery....

An enforced stupidity tax on the gullible and ignorant....I can't think of a better match between advertiser and captive audience than these charlatans and the drones who actually watch that shit Beck calls a show...

[era veteran]

14. My law, Anytime they start pimping gold on T V is

not the time to buy. A thieving company with a clown shill.

[Politicalboi]

16. So where is the gold until you need it?

Is it in a bank? If the banks close for some reason how do you get the gold? If all you have are certificates, how do prove their authenticity if Goldline is out of business? How long will it be till neighbors know you have gold, and they want it? How do you value gold when buying food? If everything goes to hell, gold is going to be the last thing you will have to worry about. How do you shop at a grocery store while there is a hungry mob outside the store waiting for you to come out? Sounds to me for your own safety, gold would be the last thing you would want anyone to know you have. My brother is a victim of Beckkk's scam. He thinks he will be ok if all goes to hell. He's almost counting on things going to hell. Because of who? Obama of course. LOL! You can't eat gold.