Jon Taplin takes a close look at the small print from the gold merchants pimped on Rush Limbaugh and Glenn Beck's shows and discover a whopping 30-35 percent spread between their buy and sell rates.
Obviously all these new boiler room high pressure sales groups that used to be pushing sub-prime refinancings are now trying to convince the unsophisticated listeners of right wing talk that they better buy gold before the dollar becomes worthless because of Obama's reckless spending. But how do firms like Goldline make money? Well it's all there in the fine print of their sales agreement.
Goldline's "bid" is the price it pays to clients for a product. Goldline's "ask" is the price it charges clients for a product. Goldline has a price differential or "spread" between its bid (buy-back) and ask (selling) prices for precious metals, rare coins and rare currency…
The price of Goldline's semi-numisimatic and numismatic coins and currency include the bid/ask spread that ranges between 30% and 35%.
OMG! An average stock broker commission is 2% and these scammers are getting 35% off the top. Where is the FTC and the CFTC in investigating this fraud? Why are Limbaugh and Beck propagating this scam?