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View Full Version : Goldline, lawmaker to do battle over gold coins



MNeagle
23rd September 2010, 09:55 AM
WASHINGTON (MarketWatch) –- Rep. Anthony Weiner is set to clash with a senior official from Goldline International Inc. in a politically charged hearing Thursday where the New York Democrat is expected to charge that the Santa Monica, Calif.-based precious metal dealer ‘grossly overcharges’ for their gold coins.

Weiner, who has conducted an investigation into Goldline and gold-sellers, plans to formally unveil legislation he has drafted that would regulate gold-selling companies including Goldline to disclose to consumers the reasonable resale value of precious metals they are selling. He argues that Goldline’s average markup was 90% above the melt value of their coins, with the largest markup on any coin being 208% above the melt value.

Weiner also is expected to take aim at Goldline’s endorsers, which include prominent conservatives Glenn Beck, Mike Huckabee and Fred Thompson.

“The frenzied marketplace has become rife with scam artists ready and willing to take advantage of consumers. The sole purpose of this proposed legislation is to protect consumers from being ripped off,” Weiner said. “By selling gold at twice the melt value, the price of gold would need to double for consumers to break even on their ‘investment.’”

Even as Weiner presses for more disclosure at Goldline, gold futures have soared in recent days to new records, fueled by fears of deflation after the Federal Reserve signaled it may inject more cash into the financial system to support the U.S. recovery. See MarketWatch's Gold topics page.

The Fed’s comments have largely been interpreted to mean that it will likely take further quantitative-easing measures late this year. Gold /quotes/comstock/21e!f:gc\z10 (GCZ10 1,295, +2.80, +0.22%) for December delivery hovered around $1,297 an ounce on Thursday on the Comex division of the New York Mercantile Exchange. Read about gold futures

Goldline Executive Vice President Scott Carter is set to refute criticism of the of the precious metals dealer, arguing in prepared testimony that, in the highly competitive precious metals industry, consumers have numerous sources to compare gold prices. Carter said Goldline believes that the legislation is “unworkable” and may result in “inaccurate information’ being conveyed to the consumer.”

Carter added that, generally gold has been a great investment over the past ten years, even though it can fluctuate.

“Even though spot gold prices have increased every year in the past ten years, like any asset, precious metals can rise and fall in value,” he said.

He added Goldline typically recommends that gold coins and bullion should not be any more than 5% to 20% of an individual’s portfolio and that it should be held for five to ten years.

Politically charged atmosphere
The Goldline hearing is expected also to be politically charged, with accusations by Weiner that Goldline hired conservative Fox News talk show host Beck to sell its precious metals in advertisements at the same time as the commentator employs his credibility to “drum up public fears during financially uncertain times,” driving the public into buying gold.

Fox News is a unit of News Corp., which also owns MarketWatch, the publisher of this report.

“Glenn Beck for example has dedicated entire segments of his program to explaining why the U.S. money supply is destined for hyperinflation with Barack Obama as president,” Weiner said. “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 cuts to commercial break, viewers are treated to an advertisement from Goldline.”

In addition to Beck, Goldline has hired former Republican presidential hopefuls Huckabee and Thompson to help sell its precious metals.

“There is an ethical situation that emerges where if you are reporting the news as Beck does and making economic doomsday scenarios but also trying to sell people gold as a hedge against the economic doomsday, there is an ethical situation,” said Weiner spokesman Ben Fishel.

http://www.marketwatch.com/story/goldline-lawmaker-to-clash-over-gold-disclosure-2010-09-23?siteid=rss&rss=1

Dogman
23rd September 2010, 11:11 AM
Look at some of the magizine adds out that are pushing 1/10 oz gae's
Major ripoff prices.

Sparky
23rd September 2010, 08:38 PM
As much as Goldline sucks, what the fruk is our government doing screwing around with something like this??? Geez I hate them.

1970 silver art
24th September 2010, 03:33 AM
As much as Goldline sucks, what the fruk is our government doing screwing around with something like this??? Geez I hate them.


Yeah it sucks. The gov't is trying to protect us from ourselves since we apparently are not able (or willing) to DYODD and we must not be able to say "no" to high premiums on gold coins.

So I guess that means that instead of saying "no" to paying the astronomically high premiums that Goldline charges on gold coins and shopping elsewhere, the consumer can just cry to mommy gov't and "fix" the problem. How nice.

That is my take on it.

osoab
24th September 2010, 09:26 PM
As much as Goldline sucks, what the fruk is our government doing screwing around with something like this??? Geez I hate them.


Yeah it sucks. The gov't is trying to protect us from ourselves since we apparently are not able (or willing) to DYODD and we must not be able to say "no" to high premiums on gold coins.

So I guess that means that instead of saying "no" to paying the astronomically high premiums that Goldline charges on gold coins and shopping elsewhere, the consumer can just cry to mommy gov't and "fix" the problem. How nice.

That is my take on it.




People will look for the cheapest pair of shoes, twinkies, milk, or toothpaste but they won't research if they are getting scammed by a company Seen On TV.

What a bunch of Morons.

The worst part is, we will end up paying for their stupidity. Again!

mike88
30th September 2010, 12:03 PM
"ther is an ethical situation which arises when you are reporting the news as xxxxx does and making weapon of mass destruction scenerios but also trying to sell war" the g will come out with a comic book pamphlet with a swiss frank dressed like the hamburgler, with weiner in a superhero custume showering the proles with greenbacks.