The Other McCain

"One should either write ruthlessly what one believes to be the truth, or else shut up." — Arthur Koestler

Gold Tops $1,500 Per Ounce: Now Don’t You Wish You’d Listened to Glenn Beck?

Posted on | April 24, 2011 | 12 Comments

A little less than a year ago — on May 20, 2010, to be exact — I first took notice of Democrat Rep. Anthony Weiner’s attack on Glenn Beck for encouraging people to buy gold. The headline of my post:

Everybody Should Buy Gold, Even If
Glenn Beck Gets Paid to Tell You So

Weiner accused Beck of having a conflict of interest: Goldline was one of his advertisers and so, when Beck warned against the inflationary policies of the Obama administration, this could be seen as at least an implied promotion of his advertiser’s product, as investments in gold represent a hedge against inflation. Part of Weiner’s criticism was related to charges that Goldline engaged in dubious marketing practices, but his real indictment of Beck was that the Fox News host was hyping inflation fears for profit.

But anyone with the most basic understanding of economics could see that the Obama administration’s policies were inflationary and so, despite Weiner’s attacks, if Beck was telling people to buy gold, he was actually giving them sound advice. On that day, May 20, 2010, the latest closing price for gold was $1,192.60 per ounce. As of this past Friday, gold was at $1,503.40 per ounce.

So gold has gained $310.80 per ounce — a 26% increase — in less than a year. If you listened to Beck (and me) in May 2010, your $10,000 gold investment is now worth $12,600. And this would be an excellent time for you to cash out enough of your gains to hit my tip jar for $20. (What, you think I’m giving this great investment advice for free?)


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