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May 25, 2010

Are You Now Or Have You Ever Been A Pitchman For Goldline International?…

No one is more concerned about the financial well being of conservative talk show listeners than liberal Democratic Congressman Anthony Weiner.  That is why he has asked the Federal Trade Commission and the Securities and Exchange Commission to open an investigation into conservative talk show sponsor Goldline International suggesting its actions are “possibly illegal.”

The Congressman’s passion for protecting conservative listeners runs so deep, he literally has no time left over to investigate popular liberal talk show sponsor, ITM International, which also sells gold coins.

Talk about being willing to "reach across the aisle!

In support of his accusations against Goldline International, Congressman Weiner issued a damning report on the company and the conservatives who help pitch their wares.

For example, the Congressman points out that Goldline sells numismatic, or “collector” coins, for nearly twice the value of their gold content!  As Weiner explains:

“Goldline sales representatives aggressively push the sale of numismatic coins (collector) over bullion (pure gold) because the company has the largest profit margin on them and the sales representatives make the largest commission.”

“By selling gold at twice the melt value, the price of gold would need to double for consumers to break even on their ‘investment.’”

 Contrast this with ITM International, which notes that:

"Numismatic coins and rare coins are essentially names for the same categories of coins. They are coins whose value is not only derived from the pure gold content, but also derived from their collector value, due to their scarcity and level of preservation, as opposed to bullion coins, whose value is derived from their precious metals content only."

And so what does ITM conclude from this?

Rare Gold Coins
Regardless, we think the Congressman is on to something with this collector-coin scam. 

Take the 1909 S Lincoln penny.  In excellent condition, you might have to pay as much as $3000 to $4000 for one and yet we know from the other day that it’s copper content is only worth 2 cents.

Talk about a rip off.

And never mind coins, how about fine art? Picasso’s “Nude, Green Leaves and Bust” recently sold for $106 million.  According to Congressman Weiner, that means that you would have to wait for the price of paint to appreciate ten million percent just to break even.

And they say Michelangelo’s David is “priceless?”  Not if you’re looking for some marble insets for your foyer it isn’t.

Congressman Weiner further indicts Goldline’s practices by noting that:

“The reason given to customers by sales associates for why they should purchase these more expensive coins is often that if the government ever comes to confiscate your gold, they can’t take your vintage and collector coins. This is in reference to an overturned executive order issued by FDR in 1933 requiring Americans to sell their gold to the government, with an exception for "gold coins having a recognized special value to collectors of rare and unusual coins," the executive order however did not define special value or collector value, and certainly not collectibles. Nevertheless, telemarketers promoting old U.S. gold coins perpetuate this myth because it makes the selling of high-priced numismatic coins easier.”

This is nothing at all like ITM’s sales pitch.

1933 Executive Order
Well, okay, except for the 1933 reference, the playing on fears and the suggestion that the government can't seize your coins.

Oh, not to mention their "immunity from gold confiscation" noted above.  But you see there's an important difference here, a higher principle at stake:

Congressman Weiner doesn't like Glenn Beck.

And there's more. Weiner also highlights Goldline’s “hidden fees,” such as the fee they charge if you want to store your gold coins with them.

We don’t know about you, but whenever we buy something, we naturally assume the vendor will store it for us for free forever.  That’s just expected these days.

But perhaps most damning of all, the Congressman accuses Goldline of having prices higher than their online competition.  You heard that right.  Goldline, just like liberal favorite ITM, is a full-service gold seller in which all transactions are handled over the phone.  All four companies that Weiner compared Goldline to are internet enterprises that take advantage of online ordering.

Here is a list of other businesses Congressmen Weiner might consider investigating given their “possibly illegal” practice of not being Internet companies:

  • Stock trading
  • Books
  • CDs
  • Electronics
  • Anything that can be put in a box.
  • Everything else.

Let’s just say you won’t be seeing Merrill Lynch rushing to sponsor conservative talk shows any time soon.

The Congressman contends that “Conservative Pundits Profit on Peoples Fear,” by pushing the message “that as an investor you should protect yourself by stock piling gold coins,” and that, "I own it and I think you should too," with gold being "a very safe, solid, and growing investment."

Oh, wait, those last two were from liberal talk show host Ed Schultz.

We have no idea how we could possibly have confused them given how non-investigation-worthy Ed Schultz’s comments are vs. the obvious conservative fear mongering.

Careful readers and those who tend to not start drinking until after twelve, might note that one of our more prominent advertisers here at Planet Moron is Casey Research which has occasionally suggested that gold might be a good investment.  In fact, we are often sent editorials from Casey Research that serve as marketing vehicles for their services such as The End of the Gold Bull Market which includes an offer for a free report, “How Do I Know When To Buy Gold,” and How Low Will Silver Go?, which offers a “2010 Silver Buying Guide.” We even receive some of their products and have purchased gold and silver in the past.

But then, we believe gold and silver are safe, solid, and growing investments that can help you protect your wealth. We own them and think you should too...

So, do you think we should we turn ourselves into the FBI now, or wait until Weiner catches up with us?


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May 25, 2010 at 04:31 PM in Current Affairs | Permalink


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If Weiner wants to investigate an organization which is totally fraudulent, is essentially bankrupt, is operating a Ponzi scheme, has technically defaulted on its debts and sponsors nefarious schemes to defraud investors he might want to start with an investigation of the UNITED STATES GOVERNMENT and then the FEDERAL RESERVE SYSTEM then on to the Social Security system et al. That ought to keep him busy for the next 12 years or so.

Posted by: KRANKANKOR | May 25, 2010 10:23:04 PM

Not start drinking until after twelve? What happened to "beer is not just for breakfast anymore?"
And don't forget, it must be five o'clock somewhere.

Posted by: barryjo | May 26, 2010 8:13:06 PM

Beer is considered drinking? Uh oh.

And KRANKANKOR, if you can get Sean Hannity or Mark Levin to start doing pitches for the Social Security Administration you just might have something.

Posted by: Planet Moron | May 27, 2010 3:52:03 PM

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