Goldline Marketing Practices Under Fire on Capitol Hill

Glenn Beck's favorite gold company was dragged to Capitol Hill Thursday to answer questions regarding its marketing and sales practices. Goldline, the omnipresent pusher of gold coins in radio and TV ads (and for whom Beck was a paid spokesman), is under fire from Rep. Anthony Weiner for scamming its customers.

Weiner, author of the proposed Precious Coins and Bullion Disclosure Act, said Goldline and the TV gold-selling industry prey on investors by persuading them to buy gold coins at markups well above the precious metal's market value. "We're talking about a classic consumer issue," Weiner said at a House subcommittee hearing. "The television gold industry, led by [Goldmine], is built on lies, fear and rip-offs."

DIY Due Diligence

Scott Carter, executive vice president of Goldline International, defended his company's disclosure practices as the best in the industry and said clients can easily conduct their "own due diligence among thousands of precious metals dealers."

Weiner has been after the as-seen-on-TV gold-retailing industry since May. The Democratic congressman from Queens, N.Y. unveiled his proposed legislation last week, and it received its first public hearing Thursday by the House Subcommittee on Commerce, Trade and Consumer Protection.

Dr. Julius Bazan, a neurologist from Long Island, N.Y., told the hearing that a Goldline salesman pressured him into buying $140,000 in gold coins. "I wanted bullion but he said that's not a good investment because in the 1930s the government confiscated all the gold bullion," Bazan said.

When the price of gold failed to move after six months and Bazan wanted to sell, the salesman gave him the "melt" or market value of his gold. "My $140,000 investment was down to $83,000," Bazan said.

Disclosure Requirements Proposed

Gold coins can have a markup of as much as 30% to 40% above the value of the gold contained in the coin. Bullion is also marked up, but to a lesser degree.

The proposed legislation would require dealers of bullion and certain investment coins to disclose prior to sale all fees associated with purchasing the items, the items' purchase price, the value of the metal in them, and the value for which they could be sold to other dealers.

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lv2breathe

I wrote a comment here prior and I am now providing an UPDATE.
I took my concerns and I am very glad to say that Goldline addressed them all to my satisfaction. I feel happy and satisfied. Thank you Goldline.

May 23 2011 at 8:12 PM Report abuse rate up rate down Reply
lv2breathe

I had a terrible investment experience with Goldline. Just as shocking, if not more, than what Dr. Bazan had. It was the worst investment experience of my life. It was so bad, I am writing a blog about my experience. The purpose is to empower and inform others who have been harmed by this company, to help heal myself from this shocking experience and hopefully, in the end, create a more honest investing community.

Please visit mygoldlinedisaster.com I welcome all who have had bad experiences with this company, as well as current and former employees. We need the truth about this company.

www.mygoldlinedisaster.com Thank you.

February 09 2011 at 4:45 PM Report abuse rate up rate down Reply
whitleyrussel

I have never been ripped of by Goldline or done business with them period, but I am an avid investor in gold/silver. I have purchased gold/silver from a handful of investment firms, but the most positive experiences I have had have been with Regal Assets LLC. They have fast delivery, excellent customer service, knowledge about the industry, and amazing prices. If you want any other advice on buying gold/silver and diversifying your porfolio, please email me so I can then send you more information on competitive gold investment firms.

October 01 2010 at 2:43 PM Report abuse rate up rate down Reply
Lawrence

Invest in chickens....you can always eat fried chicken....gold doesn't go down as well...

September 25 2010 at 1:23 PM Report abuse +1 rate up rate down Reply
Deborah

Goldline has a 30% markup on any of their products far above the industry standard. I can buy gold from my neighborhood coin shop for a 5% markup pover spot and from Merit financial at 1% about spot delivered to me door. I';m not sure Mr Beck realized that when he agreed to the ad contract. A lot of very smart people have no idea how the gold market works . Goldline is a slick saleman. You can buy Gold on EBAY cheaper and get free shipping. Merit Financial is the cheapest company[ I researched all of them and their fees and markups and shipping] with a 1% markup and guaranteed buyback at spot.

September 25 2010 at 9:02 AM Report abuse rate up rate down Reply
partsautomall

SOUNDS LIKE OBAMA IS TRYING TO DISCREDIT BECK.GOD BLESS THIS COUNTRY AND DELIVER US FROM THE DEVIL OBAMA

September 24 2010 at 6:57 PM Report abuse -7 rate up rate down Reply
1 reply to partsautomall's comment
teachmax

hey p.a.m.

September 24 2010 at 11:09 PM Report abuse rate up rate down Reply
tracer2524

velociwrangler-The world is over flowing with critics-(for you to understand first you will need to look at the definition of a critc) after you have read it you will understand that trying to make up for your shortcomings (whatever they maybe) by trying to impress upon others that you in your own mind seem to believe that you are more educated and or well versed is only showing your flawed moral compass. Maybe you are the one that needs to further their educational experience. The world does not revolve around Playstation (or in yours maybe it does). Grow up would be a better solution and act like an adult (maybe)

September 24 2010 at 5:50 PM Report abuse -1 rate up rate down Reply
1 reply to tracer2524's comment
velociwrangler

Gosh Tracer, got a bee in your bonnet? LOL. First, let me assure you, I wouldn't know a playstation from a train station, or any other modern day slacker pacifier. Secondly, I'm sorry I posted over your head, but I was bored and somewhat freaked out by the abject distruction of the English language I was encountering on the Anti-Beck tirades. However, I would point out that your entire post was demeaning and insulting, just not as flowery as mine, so get a grip and post something relevant to the topic at hand.

September 24 2010 at 6:06 PM Report abuse rate up rate down Reply
velociwrangler

After reading numerous posts by Liberals, I suggest you not invest your money in gold, but rather invest in evening remedial English writing classes. You won't be disappointed. LOL

September 24 2010 at 5:13 PM Report abuse -1 rate up rate down Reply
velociwrangler

The reason Beck's success continues is because of the truth in something Marcus Cato said a couple of thousand years ago..."Adversus solem ne loquitor". It was true about Roman manifest destiny back then and it is true today about Beck.

September 24 2010 at 5:08 PM Report abuse -2 rate up rate down Reply
velociwrangler

I wonder if this rocket scientist Weiner is going after Zales next. Can you imagine how disappointed Dr. Julius Bazan would be if he had bought a retail diamond for $ 140k and tried to dump it back to Zales six months later?

September 24 2010 at 5:05 PM Report abuse rate up rate down Reply