Glenn Beck, Other Conservative Hosts Profit from Gold Fever

So, you are worried about the economy? Want a little hedge against inflation or the outright collapse of the dollar? What are you to do? Well, if you take Glenn Beck's advice, you go for what he calls the "Three G's - God, Guns, and Gold."

While I personally have little use for the first "G," I do own a couple of guns and some gold and silver coins. And both have done quite well as of late. Will they do even better, as Beck and other conservative hosts promise? Or is there a conflict of interest, with Glenn Beck making a profit from gold exceeding what you could hope to?

Beck's economic paranoia, like the best propaganda, begins with a small kernel of truth. The dollar has been in decline as the premier currency in the world for decades when you look at the long term. Since the onset of the economic insanity called Reaganomics the dollar hasn't had that strong of a footing.

Had it not been for the earlier decision to make dollars the only accepted exchange medium for the big oil producing countries, it would be in much worse shape now than it actually is. The saving grace for the dollar may well be that so many are so invested in it remaining strong. From the world's largest economy to the countries that hold large amounts of debt, a sound dollar is beneficial.

Still, precious metals do provide a hedge against currency decline. As the dollar weakens in relation to other currencies, gold, in dollar terms, rises. Put that together with inflation concerns worldwide and a wave of paranoia, and the result is a steep rise in the price of especially gold and silver.

But should you listen to Beck and other talk show hosts? I suppose that depends on how much you want to spend. Gold and silver are traded using a "spread." That means the price they will buy coins or bullion back from you is less than the price you will have to pay them to get the same coin. Fair, enough, they have to make money to be in business, right?

Yes, but the spread can vary widely depending on where you shop. I have traded a little bit of gold and silver over the years, mostly because I like the coins. Not a major player by any means, but I do like to watch my pennies, even if it's only on one coin.

(Goldline) is the company Beck supports and says "I was a customer of theirs before they were a customer of mine" about. I have done business business with (Affordable Jewelry and Precious Metals) of Portland, Oregon.
I linked both to their pages advertising silver bullion.

I couldn't find pricing for gold bullion on Goldline's site, so I priced silver. On goldline's site as of this writing you can buy a 1 oz. silver American Eagle coin for 29.95. On Affordable Jewelry and Precious Metals, you can order the exact same coin for 21.18. They will buy it back from you today for 17.90. The difference is the spread. Which price do you think will overcome the spread sooner to put you into a profit spot?

Glenn Beck and other talk show hosts use their name to sell precious metals for far more than you should have to pay. I saw a funny comment on a blog talking about this - a woman says she spent 5,000 dollars at Goldline and was disheartened to find she could have bought the same coins for 2,600 elsewhere.

The funny (and tragic) part? She writes "How could I be mislead by Glenn Beck, Fred Thompson, and Marvin (sic) Levin?"