Executives from Glen Beck’s favorite gold company, Goldline, testified in front Congress yesterday. Rep. Anthony Weiner showed no mercy.
“We’re talking about a classic consumer issue,” Weiner said at a House subcommittee hearing. “The television gold industry, led by [Goldline], is built on lies, fear and rip-offs.”
While Weiner has a point, at least when it comes to Goldline being a predator, one has to wonder why Congress doesn’t share that level of outrage for the infinitely larger problem of payday loan predators? Is it because Goldline doesn’t have the lobbying power of the entire banking industry? Or because Beck endorses Goldline, thus making it a partisan hearing?
On the very same day of the hearings there was another headline in the markets.
Gold prices traded in record territory again Thursday as inflation-wary investors bid prices up near the psychologically important threshold of $1,300 an ounce.
Gold prices gained $4.20 to settle a record $1,296.30 an ounce, building on gains it made after the Federal Reserve announced Tuesday it might take further steps to stimulate the economy. …
Gold prices have nearly doubled since 2008, when an economic panic shook global credit markets and central banks responded by flooding currency markets. Since then, global economic uncertainty and inflation fears have spurred investors to shift money from stocks and cash into gold.
The simple fact is that while Goldline might be stoking the hype and fear, people would be rushing into gold even if Goldline didn’t exist. The reason isn’t because of lies and rip-offs. The reasons are based on sound historical facts.