The story is so perfect and has all the elements: a crooked gold broker promoting conservative talking heads like Beck and Hannity, who scream apocalyptic stories about hyperinflation, getting gold bugs in a lather so they buy gold at inflated prices based on fraudulent bait and switch practices. This is the real face of the gold market. http://www.huffingtonpost.com/2011/...ng-grid10|htmlws-main-bb|dl1|sec3_lnk3|109557
just herd about this a few days ago and wondered if there was any discussion om it. guess not. Who here bought Becks gold and was talking out of gold bullions for overpriced rare swiss coins?
I'll start by saying this.. inflation for the month of October was 3.53%. Did anybody get a wage increase? How about since April inflation has been above 3%. So since April the dollar has declined 21%. Did anybody's wages increase by 21%? But with this said it takes two to tango. Somebody wrote the check to buy them. You don't have to buy coins if you don't want to. But if it was truly a bait and switch why just go after Goldline? There are plenty on Wall Street who do the same thing with the SPDR Gold Shares (ETF). There isn't enough assets to cover the calls, yet people think there is. Is that not Fraud as well? Gold is a good asset to own. It does offset inflation. Buying coins is not that type of gold to own.
Uhhhh, no. The 3% is an annualized figure, and I believe you're refering to CPI not inflation. You've totally misread it. Inflation is almost nonexistence and has been for a couple decades. The Bush Recession caused a deflationary spiral in a number of sectors, housing being the most obvious. So if inflation is your concern, cheer up. Only cranks see hyperinflation in the offing.
Ok, I really hate making people look foolish but it's finally time to do it. I'll explain this for even the slowest of slowest people. CPI is "a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services." That is inflation or deflation. Depending on if prices rise or fall. So you understand CPI is a measure of price increases (inflation) or price deflation. For example: If gas last week was $3.50 and then next week it's $4.00 that is an inflation rate of 14% in gasoline. You can check this out for yourself by this equation: ((B - A)/A)*100 = % B= current price, A= old price. Now a part of inflation/deflation comes down to the value of the currency. You can explain some inflation/deflation on this but not always. For example look at this chart. http://www.bloomberg.com/apps/quote?ticker=DXY:IND The period in which we had "deflation" (March 2009-Oct 2009) the value of the dollar strength and we entered deflation and the Fed printed money to spur inflation. Issue with this though (since you say inflation doesn't happen) is that since Nov 2009-Oct 2011 the monthly CPI (inflation rate) has always been over 1%. That means each month the value of the dollar you buy with has declined, year over year, month over month. That my friend is inflation. It may not see like a lot now but it adds up. Remember 30 years ago you could buy a car for $7,000 today it's close to $15,000 just for the dumb down version. That is a 100% inflation over the last 30 years or roughly 3% per year. Wages over the period kept up with it. But today wages do not. It's actually very telling what James Bullard from the Fed St. Louis Bank said on CNBC yesterday. But you can figure that out for yourself.
It is not the proper role of government to protect people from their own stupidity, what kind of idiot takes the word of a salesman as the god honest truth? The muppets that actually bought these numismatic coins should have checked up on whether these things were actually worth anything and how high their gold content was.
But not in the other, bigger, liberal controlled sectors like Medicine or education. Oh, when will we add in Food and fuel again? I know that is what is hurting MOST people, and yet the government wants to ignore those figures.
