Tuesday, April 21, 2015
FAIRFIELD-SUISUN, CALIFORNIA
99 CENTS

Gold hustlers hard at work

stevenson column sig

By
From page C1 | August 10, 2014 |

It’s not that they’ve reached a new low, they’ve sunk to a new low.

If it weren’t almost impossible to avoid their commercials on radio and TV, I wouldn’t have them in my (mental) gun sights. I’m talking about the gold hustlers, of course, probably for the 200th time since I’ve had the privilege of writing about the world of investing, finance and even economics for the Daily Republic.

I should say that this gimmick has been used in all sorts of commercials over the years, so you might think that viewers and listeners would realize how sleazy the advertisers are. Look on Google for “Rosland Capital Scams,” and it will take you all day to read the stories. Maybe by coincidence, but as I sit here at my computer, they’re airing a commercial for Lear Capital, which should be right up there with Rosland for low-life commercials.

Before going any further, let’s look back at how gold has performed in the past 12 months. I look at the SPDR Gold Trust ETF, which trades on the New York Stock Exchange under the symbol “GLD.” It’s currently selling for 125.89 per share, which, if you move the decimal point one place to the right, you have the price of gold.

Now – forgive the technical discussion – we can see the range for the past year. The low was 114.346, while the high was 137.55. Translated into the actual price for the precious metal, you can see that gold has done nothing, absolutely nothing, in the 12-month period. Oh, sure, it’s gone up and down in its trading range, but if you were a “buy and hold,” you would have been much better off buying your average stock-based mutual fund.

No, it’s not a conspiracy, but Rosland Capital and Lear Capital are at or near the top of the list of cable channel advertisers. The newest – or oldest – when it comes to misleading commercials is the “Be one of the first 50 callers and you’ll get this certificate ‘redeemable’ in gold.”

So how much gold is it worth? One-20th of a gram, that’s how much. Without doing the math, I don’t think you could exchange it for a can of Alpo dog food. Not only is this “certificate” practically worthless, but this “be one of the first 50 callers . . .” routine is, I would guess, deceptive. Do they mean “be one of the first 50 callers” today, or every time they run the commercial, which might amount to, who knows, dozens or hundreds of times around the country? Or does it mean whatever they want it to mean?

Now, this is just a guess, but what do you think happens when you’re “one of the first 50 callers?” It couldn’t be that a fish hook will be implanted in your lower lip so that you’ll buy gold or silver at inflated prices, could it? I guess the cable networks won’t reject these sleazy commercials as long they’re so profitable. They don’t have the legal obligation to check into the “integrity” of their advertisers, so, as long the advertising money keeps coming in, they’ll run the commercials.

I’ve got an idea. Be one of the first 50 readers to wire $100 into my bank account, and I’ll send you my free book, “How to Make Money in the Alfalfa Market.”

Bud Stevenson, a retired stockbroker, lives in Fairfield. Reach him at [email protected]

LEAVE A COMMENT

Discussion | 9 comments

The Daily Republic does not necessarily condone the comments here, nor does it review every post. Read our full policy

  • Understanding Gold and SilverAugust 10, 2014 - 9:40 am

    I little education for Mr. Stevenson. Precious metal investors don't buy precious metal for any gains it might make on a annual basis..Precious metals are held because of the ongoing debasement of our currency. It's a store of wealth! In the 1920's you could take $20 in paper money and buy a $20 gold piece..At that time in the 1920's you could buy a month's worth of groceries for that $20 gold or paper, it was worth the same value. Today..if you had that $20 gold piece in one hand, you could buy 6 months of groceries and I'll bet you can't even get 1 bag of groceries with $20 in paper. Even if you ate Top Ramen everyday you couldn't make it a month on $20 in paper In 1965 you could take 3 paper dollars or 3 silver dollars and each would fill up your gas tank on your car...You can't even buy a gallon of gas today with those $3 paper dollars..but you can fill up your tank twice with those 3 silver dollars. I didn't see any of these facts mentioned in Mr. Stevensons article. I truly believe there will be a day when the masses finally understand what's happening to their assests that are based in paper currency. When you see retirement assets and pensions become practically worthless in Purchasing power there will be shear panic as people vacate the dollar. It will be then a Man's real worth will be measured in Oz. of real money instead of paper.

    Reply | Report abusive comment
  • mdsAugust 10, 2014 - 3:10 pm

    Mr. Understanding Gold and Silver, do you also understand the stock market? So your $20 gold piece from the 20's is worth all kinds of money but your $20 bill in only worth $20 still? That would be true if you stuck it in your mattress for the last 90 years. What would it be worth if you bought $20 worth of shares in a mutual fund 90 years ago?

    Reply | Report abusive comment
  • SayWhat?August 10, 2014 - 8:53 pm

    mds said: "What would it be worth if you bought $20 worth of shares in a mutual fund 90 years ago?" Maybe it would be worth nothing if you chose the wrong mutual fund 90 years ago. Some do go out of business.

    Reply | Report abusive comment
  • mdsAugust 11, 2014 - 9:34 am

    Maybe it would be nothing, maybe it would be worth a lot. If you have bought 100 shares of Walmart in 1972 for $1600 you would be a multi-millionaire right now. The point being gold is an investment just like many other things. The main advantage to gold investment is you know it's never going to be worth nothing like can happen with other investments.

    Reply | Report abusive comment
  • Gold sellerAugust 10, 2014 - 11:24 am

    I curious about all the shops that buy gold--old jewelry, coins, any scrap gold. They must do well selling it somewhere else. Where's the best place to sell gold?

    Reply | Report abusive comment
  • Gold BugAugust 10, 2014 - 12:00 pm

    Not at a kiosk in the mall or at your grocery store! They typically pay about 40 percent or less of the actual value of the gold you wish to sell. Most reputable coin dealers offer a much better deal, up to 80 or 85 percent of value. How to determine the value is easy to do but too complicated to spell out here. Just never, ever sell to anyone you don't know and trust. Never, NEVER mail your gold somewhere to be sold. Both Fairfield and Vacaville have reputable coin dealers and you should get a quote from at least one of them before you sell.

    Reply | Report abusive comment
  • Understanding Gold and SilverAugust 10, 2014 - 12:06 pm

    I totally agree..most of these small shops that advertise "we buy Gold" are looking for clients who have neck tattoos.. I don't sell..but if I had to, I would use a reputable coin dealer.

    Reply | Report abusive comment
  • Understanding Gold and SilverAugust 10, 2014 - 3:57 pm

    I can answer that...$20 in the stock market since 1920 with compounding interest would be worth absolutely zero if the dollar is completely debased. In the history of mankind...all fiat paper currency has collapsed. If you choose to hold these little pieces of paper with 0's on them that is your personal choice...I choose to take paper and buy the only real currency that has been used for thousands of years.

    Reply | Report abusive comment
  • JimboAugust 10, 2014 - 10:46 pm

    Faux News hocks this gold ruse to its uber paranoid lemmings. Glenn Beck for example has dedicated entire segments of his program to explaining why the U.S. money supply is destined for hyperinflation with Barack Obama as president. He will often promote the purchase of gold as the only safe investment alternative for consumers who want to safeguard their livelihoods. When the show cuts to commercial break, viewers are treated to an advertisement from Goldline.

    Reply | Report abusive comment
.

Solano News

 
Kids Day of Fishing began with $20 donation

By Amy Maginnis-Honey | From Page: A5

 
Chabad will begin Torah for Solano Jewish community

By Amy Maginnis-Honey | From Page: A5

Library foundation executive moves to Child Haven

By Susan Winlow | From Page: A5

 
Theater schedules free screening of Sundance film

By Amy Maginnis-Honey | From Page: A8

Vacaville plans recreation expo

By Amy Maginnis-Honey | From Page: A5

 
Frazier to discuss transportation at EDC breakfast

By Kevin W. Green | From Page: A5

 
Fairgrounds site of horse-betting seminar, brunch

By Susan Hiland | From Page: A8

Il Fiorello schedules vegetarian cuisine class

By Susan Hiland | From Page: A8

 
Fairfield police log: April 19, 2015

By Glen Faison | From Page: A12

Suisun City police log: April 19, 2015

By Glen Faison | From Page: A12

 
.

US / World

Lawmakers seek FDA review of ingredients used in cosmetics

By The Associated Press | From Page: B2

 
Prosecutors: Capsized boat captain and crew member arrested

By The Associated Press | From Page: B2

 
High-speed rail approves 5 bidders for more construction

By The Associated Press | From Page: B2

 
Sheriff’s domestic violence-related conviction erased

By The Associated Press | From Page: B2

Utah woman gets up to life in prison in deaths of 6 newborns

By The Associated Press | From Page: B2

 
Police: Video didn’t capture suspect’s fatal spine injury

By The Associated Press | From Page: B2

California Uber driver accused of running down bicyclist

By The Associated Press | From Page: B2

 
US warship heads to Yemeni waters; could block Iran weapons

By The Associated Press | From Page: B2

Lawyer: Washington Post reporter in Iran faces 4 charges

By The Associated Press | From Page: B2 | Gallery

 
Many migrants drawn by jobs, welfare in northern Europe

By The Associated Press | From Page: B2

Bombs shatter houses in Yemen capital, hit near Iran Embassy

By The Associated Press | From Page: B2

 
Questions, answers about federal anti-radicalization effort

By The Associated Press | From Page: B2

 
Where US sees terror prevention, some Muslims see profiling

By The Associated Press | From Page: B2, 2 Comments | Gallery

Sacramento woman eats 3 steak dinners in 20 minutes in Texas

By The Associated Press | From Page: B2

 
Chemistry Ph.D. student illustrates her thesis in comic book

By The Associated Press | From Page: B3 | Gallery

Public memorial held for the Rev. Robert Schuller

By The Associated Press | From Page: B2

 
SC paper wins Pulitzer for reporting on domestic abuse

By The Associated Press | From Page: B2

6 from Minnesota charged with trying to join Islamic State

By The Associated Press | From Page: B2

 
.

Opinion

 
Why does Fed insist on targeting inflation?

By Ramesh Ponnuru | From Page: A11, 1 Comment

Income disparity study results ironic

By Dan Walters | From Page: A11

 
.

Living

Community Calendar: April 21, 2015

By Susan Hiland | From Page: A2

 
.

Entertainment

AC/DC drummer Phil Rudd pleads guilty to threatening to kill

By The Associated Press | From Page: B3

 
Bobby Brown’s lawyer: Bobbi Kristina Brown has opened eyes

By The Associated Press | From Page: B3

US writer who fled Austria to escape Holocaust dead at 90

By The Associated Press | From Page: B3

 
Vice News, NPR, CNN, WNYC win double Peabody Awards

By The Associated Press | From Page: B3

HBO planning to deal Web pot sitcom ‘High Maintenance’

By The Associated Press | From Page: B3

 
Kolbert’s ‘Sixth Extinction’ wins Pulitzer for nonfiction

By The Associated Press | From Page: B3

Wolfe’s ‘Anthracite Fields’ wins Pulitzer for music

By The Associated Press | From Page: B3

 
Anthony Doerr wins Pulitzer Prize for fiction

By The Associated Press | From Page: B3

Elizabeth A. Fenn wins Pulitzer Prize for history

By The Associated Press | From Page: B3

 
Gregory Pardlo’s ‘Digest’ wins Pulitzer Prize for poetry

By The Associated Press | From Page: B3

David I. Kertzer wins Pulitzer for biography-autobiography

By The Associated Press | From Page: B3

 
Stephen Adly Guirgis wins Pulitzer for drama

By The Associated Press | From Page: B3

.

Sports

Mustangs rally in seventh inning to top Falcons

By Daily Republic staff | From Page:

 
AP source: Peterson stays home from Vikings workouts

By The Associated Press | From Page: B1

Report: 2 teams needed to make California stadium profitable

By The Associated Press | From Page: B1

 
Data deluge: MLB rolls out Statcast analytics on Tuesday

By The Associated Press | From Page: B1

Former Chicago Bears linebacker Doug Buffone dead at 70

By The Associated Press | From Page: B1

 
New format means injured drivers no longer must race

By The Associated Press | From Page: B1

Saunders: ‘I’m the coach until I say I’m not’

By The Associated Press | From Page: B1

 
Faldo to make final appearance at British Open this year

By The Associated Press | From Page: B1

Braves’ McKirahan suspended 80 games for positive drug test

By The Associated Press | From Page: B1

 
Raptors Lou Williams wins NBA Sixth Man Award

By The Associated Press | From Page: B1

Ugly Olympic conflict breaks into open at Sochi conference

By The Associated Press | From Page: B1

 
Pacquiao gets in 2 words before conference call cancelled

By The Associated Press | From Page: B1

Eagles sign quarterback Tim Tebow to 1-year contract

By The Associated Press | From Page: B1

 
McLellan out after 7 years as coach of San Jose Sharks

By The Associated Press | From Page: B1

Pelicans coach says Warriors arena noise might be too loud

By The Associated Press | From Page: B1

 
Police: LA Kings’ Jarret Stoll had cocaine, Ecstasy in Vegas

By The Associated Press | From Page: B1

Desisa wins 119th Boston Marathon; Rotich takes women’s race

By The Associated Press | From Page: B1

 
Jockey Chris Antley leads Racing Hall of Fame class

By The Associated Press | From Page: B1 | Gallery

.

Business

Judge returns ultra-rich club founder Tim Blixseth to jail

By The Associated Press | From Page: B4

 
Running out of time: Limited-time deals can be limiting

By The Associated Press | From Page: B4

$134M proposed for 10 BP-funded oil spill recovery projects

By The Associated Press | From Page: B4

 
Hormel says bird flu outbreak will hurt turkey sales

By The Associated Press | From Page: B4

Bird flu confirmed at Iowa farm with 5.3 million chickens

By The Associated Press | From Page: B4

 
Trucking group urges government to move on speed limiters

By The Associated Press | From Page: B4

US stocks gain, rebounding from Friday’s slump; Hasbro jumps

By The Associated Press | From Page: B4

 
Survey: US businesses expect sales rebound, more hiring

By The Associated Press | From Page: B4

Bristol-Myers: 2 cancer drugs beat 1 against melanoma

By The Associated Press | From Page: B4

 
Halliburton says has cut 9,000 jobs in wake of oil’s drop

By T. Burt McNaughton | From Page: B4

Labor group seeks rehiring of workers at 5 Wal-Mart sites

By The Associated Press | From Page: B4

 
Frederick’s of Hollywood files for Chapter 11 bankruptcy

By The Associated Press | From Page: B4

Willie Nelson becomes latest celebrity in marijuana business

By The Associated Press | From Page: B4 | Gallery

 
Kraft Mac & Cheese shedding the dyes

By The Associated Press | From Page: B4

ESPN says Verizon’s new FiOS TV packages violate agreements

By The Associated Press | From Page: B4

 
Lawsuit: Southwest failed to respond to medical emergency

By The Associated Press | From Page: B4

.

Obituaries

.

Comics

Bridge April 21

By Daily Republic Syndicated Content | From Page: B8

 
Get Fuzzy April 21

By Daily Republic Syndicated Content | From Page: B7

Peanuts April 21

By Daily Republic Syndicated Content | From Page: B7

 
Rose is Rose April 21

By Daily Republic Syndicated Content | From Page: B7

Frank and Ernest April 21

By Daily Republic Syndicated Content | From Page: B7

 
Baby Blues April 21

By Daily Republic Syndicated Content | From Page: B7

For Better or Worse April 21

By Daily Republic Syndicated Content | From Page: B7

 
Word Sleuth April 21

By Daily Republic Syndicated Content | From Page: B8

Dilbert April 21

By Daily Republic Syndicated Content | From Page: B7, 1 Comment

 
Cryptoquote April 21

By Daily Republic Syndicated Content | From Page: B8

Sally Forth April 21

By Daily Republic Syndicated Content | From Page: B7

 
Garfield April 21

By Daily Republic Syndicated Content | From Page: B7

Crossword April 21

By Daily Republic Syndicated Content | From Page: B8

 
B.C. April 21

By Daily Republic Syndicated Content | From Page: B7

Wizard of Id April 21

By Daily Republic Syndicated Content | From Page: B7

 
Blondie April 21

By Daily Republic Syndicated Content | From Page: B7

Beetle Bailey April 21

By Daily Republic Syndicated Content | From Page: B7

 
Baldo April 21

By Daily Republic Syndicated Content | From Page: B7

Zits April 21

By Daily Republic Syndicated Content | From Page: B7

 
Pickles April 21

By Daily Republic Syndicated Content | From Page: B7

Sudoku April 21

By Daily Republic Syndicated Content | From Page: B8