Gold on TV: A miscellaneous rant

[Mister Earl]

Ok, I don't know about you guys, but I've about had it with those freakin' ads on TV. You know the ones. Everyone and their cousin is on TV to tell me to buy gold. "The value of gold has TRIPLED in ten years!" "Gold is an important hedge against inflation." Am I the only one who watches these things, then laughs to myself? If people really expected gold to continue to skyrocket in value, then why are so many bloody companies out there have at least ten different commercials to try to SELL it to me? And yes, I know there are about just as many looking to buy it, but they pay under market value, sometimes less than half! And they do it in a manner which removes negotiation and returns ("Just put your gold in this envelope, hope it makes it through the U.S. mail without someone just taking it, and when we send what we decide to pay you for it, take it and be grateful we gave you any money at all!")

Good grief. Every time I see those ads on TV, I can't help but think of the internet/housing/subprime bubbles/fiascoes. Meh.

Don't mind me today, folks. Just felt like a good old-fashioned rant. I haven't done one of these in at least a few years.

[Fazor]

Yeah, I see the "Sell us your gold!!!!" commercials more often than the "Buy our gold!!!" ones, but either way, the word "gold" pretty much triggers my "ignore this ad" reflex.

The commercial I really hate is the one we have (Don't know if it's national or not, but I'm sure there's at least similar ones everywhere) about "Let us help you settle your tax debt!"

You know then they go on to show some well dressed middle age couple standing in front of their tropical beach house, saying "We owed the IRS over 3 million dollars, but with the help of [whoever], we only paid $100,000!" as they stand there smiling and hugging in front of the camera.

Yeah, I'm real happy for you, bailing out on the government for the tax money that you rightfully owe them so you can continue living your life of undeserved luxury, while I sit in my little 700 sq foot house and actually pay the bills I owe. And I really respect a company that advertises that it helps these people do that.

Of course, the real kicker is that they don't help these people, as it's all a scam anyway, and they're really just set up to take money from desperate people who (at least some of which) are honestly just not able to pay what they owe, and falling deeper in debt.

Ugh.

Okay, sorry. I'm always up to join a good rant.

[IsaacKuo]

Yeah, I see the "Sell us your gold!!!!" commercials more often than the "Buy our gold!!!" ones, but either way, the word "gold" pretty much triggers my "ignore this ad" reflex.

They're two sides of the same money making machine.

It's standard practice to buy jewelry from individuals at far below cost. This isn't some strange conspiracy, it's just the way it is--try to think of any other retail items you could sell back for anywhere near the original cost.

So really, the question is a matter of supply. In financial hard times, there's going to be a flood of jewelry and in particular gold from people who just need the money that badly. But the gold merchants buying all this gold get gold from all of this supply, not money.

How do you turn lots of cheap gold into money? With all those "buy gold" commercials.

Who knows? Maybe all those people forking over cash for gold will actually come out ahead in the end.

In the meantime, the gold merchants get profits now, and for certain.

[Larry Jacks]

You know then they go on to show some well dressed middle age couple standing in front of their tropical beach house, saying "We owed the IRS over 3 million dollars, but with the help of [whoever], we only paid $100,000!" as they stand there smiling and hugging in front of the camera.

Anyone who owes the IRS that much money is likely a small business owner who got behind in their cash flow. Once you owe the IRS money, they can and do charge high penalties on top of the original tax liability, then add in credit-card (or loan shark) type interest rates on the whole thing. Once that happens, some form of settlement or bankrupsy is the likely outcome. Perhaps it's better to get something from them instead of nothing.

[captain swoop]

They have started appearing on UK TV as well.

BBC News did an investigastion. They sent off a delection of items and got prices from them all. One was offering only 20% of the daily 'spot' value, others were only offering up to 50%.
They will not tell you what the rate is they are offering per ounce before you send your items.

I sold an old chain bracelet to a Hatton Garden gold refiner, they tell you whatrt hey are offering compared to the daily price. I got 94% (they need to make a few percent .

All the TV 'Send us your Gold' outfits are rip offs.

[Mister Earl]

It's standard practice to buy jewelry from individuals at far below cost. This isn't some strange conspiracy, it's just the way it is--try to think of any other retail items you could sell back for anywhere near the original cost.

That's not the factor that gets my goat. The part that ticks me off is how they have it set up to where you have to mail them the gold, at which point they already have it in hand, and possible negotiation ends. They pay what they feel they should, and with the volume of gold I expect they buy, returns are probably not very likely.

As an example, imagine I start up a "Buy your used laptop" company, and sent out postage-prepaid little cardboard boxes for people to put their laptops in. Then I have commercials on TV showing happy people talking about the vacations they got to take because they sold their old laptops. Now imagine I instead give each person a whopping five bucks for each laptop. If you don't like it, it's already too late. I already have your laptop, and if you ask for a return, it's too late. I've already stripped it down to its components and sold off the parts, and anyway, by sealing the box you agreed to the contract stated on the form. Tough luck.

That's the impression I get with the mail-us-your-gold companies. How accurate that is, I really don't know. I have a few old gold rings (class ring, boot camp ring), and I'd have to be in really desperate situations before I sold those off.

[Fazor]

Anyone who owes the IRS that much money is likely a small business owner who got behind in their cash flow. Once you owe the IRS money, they can and do charge high penalties on top of the original tax liability, then add in credit-card (or loan shark) type interest rates on the whole thing. Once that happens, some form of settlement or bankrupsy is the likely outcome. Perhaps it's better to get something from them instead of nothing.

Yes, but you shouldn't brag about it either. And I have a hard time feeling sorry for anyone who would be in that kind of financial trouble, but is posing in their expensive clothes and Rolex watches in front of their convertible that's parked in front of their beachfront bungalow.

If you can't pay your bills, don't buy expensive things then whine about being behind on your bills! Heh.

Not that anyone should take financial advice from me anyway.

[IsaacKuo]

That's not the factor that gets my goat. The part that ticks me off is how they have it set up to where you have to mail them the gold, at which point they already have it in hand, and possible negotiation ends. They pay what they feel they should, and with the volume of gold I expect they buy, returns are probably not very likely.

Oh, don't worry. Government regulators and the threat of legal action will keep everyone honest. Better yet, if government just gets out of the way then they'll do a better job regulating themselves than any government intervention.

And the commercials explicitly say, "it's safe". What more guarantee do you need?

But seriously, you can tell the intended sort of person the ads are aimed at. Sure, they could probably get a better deal going to a random pawn shop, but that might mean going out into the scary part of town where they're sure to get mugged or worse by "those people".

[JustAFriend]

I've seen the same stuff going around and around over the past 50 years....

The cycles of trying to part your money from you go on and on and on.

If you want an education in scams go find and watch the old Dragnet series made back in the '60s with Jack Webb; their bunco department episodes outline all the same scams you see today still being successfully used on people as reported in every newpaper today.

[kleindoofy]

Ok, I don't know about you guys, but I've about had it with those freakin' ads on TV. You know the ones. Everyone and their cousin is on TV to tell me to buy gold. ...

They want you to buy lots of overpriced crap you don't need: house air freshener (open a window instead?), antacids, pepto bismol, and laxatives (eat correctly instead?), pills and remedies for non-existent illnesses, etc., etc.

Ok, Gold isn't crap, but the vast majority of TV ads sell useless crap to the brainless masses.

"Buy one, get three free!!!"

Sure. I believe it. The aliens who just shoved a probe up my derriere told me it's real. What a bargain, three free!

[HenrikOlsen]

[QUOTE=kleindoofy;1655550]"Buy one, get three free!!!"

Sure. I believe it. The aliens who just shoved a probe up m

[BigDon]

The ones that get me are the "we even buy broken jewelry!" You mean like the ones pulled off the necks of old ladies? How can anybody not see this as a big fencing operation is beyond me.

[danscope]

Did you see the "gold plated nickels" they are hawking? Supposedly they
"were" going to sell them for $50 !!!! but durring this limited time offer....
'cause we can't do this all day' , () and now they will sell you , at a strict limit of 5, a gold plated nickel, which they cleverly hawk as "Clad" in gold, a nice way of saying that it's gold plated.
I don't think so,Tim.

Dan

[Ronald Brak]

Hubba Bubba blows big fat bubbles...

[Gillianren]

It's standard practice to buy jewelry from individuals at far below cost. This isn't some strange conspiracy, it's just the way it is--try to think of any other retail items you could sell back for anywhere near the original cost.

Yes, but most retail items actually get less valuable over time. My TV is nine years old and impressively obsolete. My grandmother's pearls aren't.

. . . House air freshener (open a window instead?) . . . .

Sometimes a more feasible solution than others. I wouldn't have wanted the window open during the three weeks of mostly sub-freezing weather we had earlier this winter. (I don't want it open now, either, but I opened it when the carpet was sodden and not likely to dry properly given the humidity level in the apartment. Even now, it's more humid inside than out.) Not that I use air fresheners. Still.

[Mister Earl]

a gold plated nickel, which they cleverly hawk as "Clad" in gold

Yeah. This kind of thing always attracts my ire. So many companies nowadays use such deceptive advertising, and they never get in trouble for it. Energy drinks are another big sore point for me. Like those "5 hour energy shots". Congratulations, you're paying two bucks for an ounce of liquid you could make at home for pennies. And 5 hours of energy? You'd see the same effects from a cup of coffee and a placebo.

[NEOWatcher]

Did you see the "gold plated nickels" they are hawking? ...

And usually it's based on Dollars, but not US dollars, but some strange little island country.

[Larry Jacks]

One of the latest scam commercials hawks coins plated with 22 milligrams of gold. Even if gold sold for $1200 an ounce, 22 milligrams of it is only worth about 93 cents.

[SolusLupus]

And 5 hours of energy? You'd see the same effects from a cup of coffee and a placebo.

From what I read, the average effect of caffeine was about 2 hours, after the 30 minutes it takes for it to really kick in.

[nauthiz]

If people really expected gold to continue to skyrocket in value, then why are so many bloody companies out there have at least ten different commercials to try to SELL it to me?

The gold's just there to get you in the front door. A lot of these companies are really in the business of getting people to buy more bullion than they can afford using one of their high-interest financing plans. They're just loan sharks in cheap suits.

[Gillianren]

And usually it's based on Dollars, but not US dollars, but some strange little island country.

Actually, I thought it was Liberia in a lot of cases, but I could be wrong.

[NEOWatcher]

Actually, I thought it was Liberia in a lot of cases, but I could be wrong.

No; I have seen that too. I think it just depends on who's dollar is the cheapest at the time.

[SkepticJ]

The World Trade Center commemorative coin, now that was some seriously bad taste.

[danscope]

"Hey...Bud,....... How'd ya like to buy...( looks both ways..)
.... a..Scale ? "
Kermit the Frog says.... " A scale?!!!"

"Yeah....right,...right. Say you're in the supermarket and ya wanna buy
a pound of beans. well how'd ya know if you had a pound of beans unless ya had... 'a scale' .... like this one ? "

Even kids can see through this scheme.

Dan

[skyline5k]

Glenn Beck swears by gold. If he says it, it must be true!

[Fazor]

Glenn Beck swears by gold. If he says it, it must be true!

Not that I want to get into specifics or anything (and by "not want to" I mean, refuse to not in the least because it wouldn't be allowed) but . . .

In my case, Glenn Beck has time and again proven how someone can believe the same thing as I do, and still find a way for me to disagree with everything he or she says.

Or, to hopefully make sense of that statement, while his opinion of a subject might agree with mine, his reasoning to arrive at said opinion, and the way he presents his "points", are often so stupid and/or offensive that I just can't stand the guy.

But it could very well just be me. :-P

[PetersCreek]

Glenn Beck swears by gold. If he says it, it must be true!

Just to clarify this moderator's thoughts, since the concern has been raised. In this context, I view Mr. Beck as a celebrity spokesperson...compensated, I imagine. As written, I don't necessarily see this remark as inherently political and I see no good reason to make or comment on such a connection here.

This has been a public service announcement brought to you by an actual uncompensated moderator.

[kleindoofy]

... Even kids can see through this scheme. ...

Don't bet on it. You'd be surprised.

[danscope]

Better off with the"majic beans" . At least you'll have a bean stalk.

[eric_marsh]

Gold, like anything else, is worth what people are willing to pay for it. I think that to a certain extent the appreciation of gold is just the other side of the coin (no pun intended) of the dollar's depreciation. But with all the hype about gold in the media it also seems to me to be very much like a lot of stock market schemes where a stock goes up because of hype, a bubble forms and then the stock collapses and everybody loses except those who got out in time.