If you listen to talk radio or watch Fox, you’ve probably heard your favorite hosts like Mark Levin and Glenn Beck promoting gold for a company called Goldline.
According to MSNBC, Goldline is a rip off:
Glenn Beck is under fire for his connection to a precious metals seller that is ripping off American people, according to critics.
In a report released Wednesday, Rep. Anthony Weiner (D-NY) called for an investigation into Goldline’s alliance with conservative personalities. Weiner claims that Goldline sells gold coins for 90 percent over melt value and some radio and television hosts are aiding in the scam.
Highlighted in Weiner’s report are names such as Glenn Beck, Fred Thompson, Dennis Miller, Mark Levin, Laura Ingraham, Lars Larson, Michael Smerconish, Monica Crowley and Mike Huckabee. All are on the Goldline’s payroll.
Beck recommends Goldline but advises viewers to pray for guidance on which company to trust.
“Here’s the deal. Call Goldline, study it out, pray on it. If it’s right thing for you, then do it. But please study it out. Find the people that you trust. The people I trust are the people at Goldline,” Beck said in one advertisment.
Peter Schiff, founder of Euro Pacific Capital and soon to be gold dealer Euro Pacific Precious Metals, did his own research, and determined that Goldline was charging at least 67% “commission” while his company charges just 2% – 3% above the spot price.
In his June 1, 2010 Schiff Report video blog, Schiff says it’s not illegal for Goldline to up-charge prices, but there may be some concern as to whether or not fraud has been committed:
“Is what they’re doing illegal? It’s not illegal to over charge. It’s a free market, you can charge whatever you want if people are foolish enough to pay that price. What would be illegal would be if they were using fraud to deceptively convince people to overpay for coins.Â I don’t know if they’re doing that or not. I think Congressman Weiner has alleged that. I don’t have enough information to figure out if fraud is going on. But if there is fraud, then it is illegal and they should be prosecuted.”
“Now, if people are just overpaying, well why are they overpaying? I think they’re overpaying because they don’t know any better. Because they think people like Glenn Beck and others have already checked these companies out.”
“People are assuming it’s a fair price.”
“Glenn Beck obviously believes people should buy gold. So do I. It is scary. Paper money is being debased. People need to buy gold. They need to buy it as an inflation hedge. But what they don’t need to do is buy it from Goldline.”
Peter Schiff Video Blog: