disturbing CNBC commercial

Jesus · Dec 14, 2009

Wow. I have CNBC on all day on low volume, and I glanced over at it a few minutes ago and noticed a commercial that advertised buying physical gold on leverage. It advertised that you could buy at 5 to 1. It appeared like it was geared to individual investors. It kind of reminds me of the great depression when people were putting 10% down on their stocks and borrowing the rest.

If you leverage your physical gold and use $20,000 to buy $100,000 (Like they advertise you should),and buy at the gold at 1000 an ounce and gold goes to 500 an ounce, then you will actually owe thirty thousand to this company. THATS SCARY, ESPECIALLY IF AVERAGE AMERICANS START TO DO THIS. Could ruin lives.

Maybe this is a bubble?

Arthur Deco · Dec 14, 2009

Betcha ya can't take possession! And that it's a "pool." And a bucket shop.

dangerkitty · Dec 14, 2009

That's insane!

Then again, the sun always shines on TV.

turkeyneck · Dec 14, 2009

Don't get me started...

Why the fark do they put the Dow bug on the lower right hand corner of the screen? Are they going to do a victory dance at Dow 11k?

Jesus · Dec 14, 2009

Quote from Arthur Deco:

Betcha ya can't take possession! And that it's a "pool." And a bucket shop.

The commercial says they deliver it right to your door if I remember it correctly.

About once or twice a week I go to a family members house to eat dinner and visit, and they always have either fox news or fox business on. There are SO MANY gold commercials on all the time. Sometimes they'll have Glenn Beck on and he frequently promotes it. All the commercials say, "play it safe, buy gold." or "Buy gold cause its up a zillion percent in the last ten years." Whatever happened to buy low and sell high?

Plenty of hard working and honest americans who are clueless about investing or finance are gonna buy into this pitch by these idiots. They are going to get BURNED, eventually. They always do.
Its really sad.

But now they are promoting buying gold on leverage! So some will lose their savings and retirement AND they will be indebted as well.

PlusMinus · Dec 14, 2009

Quote from Jesus:

The commercial says they deliver it right to your door if I remember it correctly.

About once or twice a week I go to a family members house to eat dinner and visit, and they always have either fox news or fox business on. There are SO MANY gold commercials on all the time. Sometimes they'll have Glenn Beck on and he frequently promotes it. All the commercials say, "play it safe, buy gold." or "Buy gold cause its up a zillion percent in the last ten years." Whatever happened to buy low and sell high?

Plenty of hard working and honest americans who are clueless about investing or finance are gonna buy into this pitch by these idiots. They are going to get BURNED, eventually. They always do.
Its really sad.

But now they are promoting buying gold on leverage! So some will lose their savings and retirement AND they will be indebted as well.

Or will people who own no gold get burned? I agree that putting every penny you have into gold is as dumb as leaving it in dollars, or any other instrument.

There's nothing wrong with buying gold at "the high", which is just about half way to it's real inflation adjusted high from the 80's.

But putting money into the markets, that's all fine and good right?

The double standard applied to gold is silly.

Scataphagos · Dec 14, 2009

Quote from Jesus:

The commercial says they deliver it right to your door if I remember it correctly.

Who floats the loan for the leverage? What security does lender have?

thriftybob · Dec 14, 2009

Quote from Scataphagos:

Who floats the loan for the leverage? What security does lender have?

Its actually a bait and switch. You get lured in with the idea of buying gold, and then they instead sell you on getting much more in derivatives, on which you always get wiped out. Most people that intended to buy gold end up falling for the trick instead. They push it hard because that way they don't usually have to actually give you anything to get your money.

They won't deliver any gold that isn't fully paid for, and you can bet, if you buy from them, you will pay absolute top dollar. Try tulving for large qty or apmex for small.

mxjones · Dec 14, 2009

Quote from Jesus:

Sometimes they'll have Glenn Beck on and he frequently promotes it.

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