Whenever I see a full page ad for gold, I get suspicious, as in the Honolulu Star Advertiser yesterday. Is this one as scamish as that bag of coins ploy yesterday?
Let's look at that gold offering. I made a spot check on "U.S. TREASURY GOLD" and found nothing particularly fraud-like. The hustle was for you to call their number by noon CDT to receive up to 10 gold coins at the current spot price and with free shipping, which could save you $150 BELOW dealer cost. The problem is how many newspaper readers will see this before 7AM? They particularly tout Gold Eagle Coins. There is a current scam on $50 Buffalo gold pieces, something do with pure and clad versions:
But this ad does nothing more terrible than throw out a few hyberboles:
- Demand for Gold at all time highs
- 17 trillion in debt
- INFLATION
- The last time we had a debt ceiling debate the price of gold topped $1900/ounce--the next debt ceiling debate is soon
Remember that the price of gold has sunk this year:
Today, the price is at $1335/oz. What will be the price of gold tomorrow? In general, with a recession or depression looming, the price skyrockets. With generally good times projected, gold wallows. Of course they're related (a sudden oil price jump causes economic recession), but gold prices shoot upwards when the price of petroleum significantly jumps. The Commodities Future Price Quote (COMEX) has an ounce of gold at $1256 in February 2014 and $1628 in June 2015. There are always the optimists:
- Peter Schiff: Gold at $5,000
- James Turk (right) ups his $8,000 an ounce peak gold price forecast to $11,000 (in the next five years)
Remember, gold was only $600/ounce in 2006, but was as high as an inflation adjusted $2337oz in 1980:
Are you willing to risk your money on a commodity that continues to confound experts? Are you one of those doomsdayers fearful of an economic collapse and need the safety of pure gold to soothe your conscience? Your call.
[Thursday, August 15, saw yet another full-page gold ad in the Star Advertiser. This one featured a large photo of President Ronald Reagan, and picks a period from 2003 to 2013 showing gold being a much better investment than the stock market. They quote (but don't mention) Peter Schiff, as noted above, of gold reaching $5,000/ounce. At least they had sufficient sense not to use the $11,000/oz of James Turk. Anyway...your call.]
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