Glenn Beck’s favorite advertiser faces 19 fraud charges

Executives at Glenn Beck's favorite advertiser face 19 counts of fraud relating to alleged 'bait and switch' tactics the firm used to peddle overpriced gold coins with a much lower gold content in place of the gold bullion the customers were calling to buy.

The coins were priced at roughly twice the market value of the gold. Tricks used to make the switch included warning that the government might confiscate bullion but gold coins would be immune. This is of course a nonsensical fear since the US dollar has not been pegged to the gold price since the 1970s. Confiscating gold as FDR did in 1933 would have no effect on the dollar today, and in any case the 'numismatic' coins sold by Goldline are not rare and would likely have been included in the 1933 confiscation order.

The price of gold is trending upwards again but remains below its peak of a few months ago, and well below its 1980 peak in the wake of the Iranian election and the invasion of Afghanistan. Investors in gold futures may have made some money, but even with the tremendous run that gold has had in the past five years, almost no Goldline customers have seen a profit on their 'investment' yet.

Demand for the yellow shiny metal may enjoy another spike as disturbances spread to Syria and Iran, or it may collapse as the various stashes built up by Gadaffi and his henchmen are discovered and quietly liquidated. In either case gold is pure speculation, it is not an investment. People create wealth, machinery creates wealth, corporations create wealth -- gold creates nothing.