Pete Schiff on Gold and Goldline

http://www.futureofcapitalism.com/2011/02/pete-schiff-on-gold-and-goldline

The CEO of Euro Pacific Precious Metals, Peter Schiff, rang the other day to offer his thoughts in response to the coverage here of another gold and silver company, Goldline. Mr. Schiff, who also has a radio show and who ran for the Republican nomination for U.S. Senate in Connecticut, said his company sells $10 million to $20 million worth of gold a month, though not "numismatics," or rare or old collectible coins of the sort sold by Goldline.

The coverage here of Goldline, a big advertiser on conservative Internet, radio and cable television, was prompted initially by Rep. Anthony Weiner's plan for a congressional hearing targeting the company for what the congressman claimed were "aggressive sales tactics" to sell "overpriced gold coins." Goldline defended its practices and said it was being singled out for advertising on conservative shows.

"Weiner is right," Mr. Schiff said. "They are selling coins the way Nieman Marcus sells handbags. You don't mark up an investment like that."

Mr. Schiff said he thinks customers are overpaying in part because "the gold market is relatively new."

"People have no idea. They trust the talk show host that they listen to," he said.

"You don't want to give 'em a pass," Mr. Schiff said of Goldline. "This is one area where the government has it partially right....I'm hoping that eventually firms like Goldline will go away, and they will go to firms like me."

by Ira Stoll  |  Feb 4, 2011 at 11:38 am Related Topics:  Capital Markets Regulation, Federal Reserve, Politics receive the latest by email: subscribe to the free futureofcapitalism.com mailing list