Beware Gold Coin Rip-off
January 4, 2011
Gold coins are touted as a good hedge against impending financial doom. Now, a recent television ad by “National Collector’s Mint” offers consumers coins with “pure gold,” specifically the “2011 Buffalo Tribute Proof.” But how good a deal are these “gold coins”?
Gold has shown an increase in value over the past year, going from about $1,100 per troy ounce (31.1035 grams) to over $1,400 per troy ounce, an increase of over 27%. Popular commentators such as Glenn Beck have touted the purchase of gold coins as a safe haven against our troubled economy.
The ad describes the historic $50 Buffalo Gold Coin, the first 24 karat gold coin minted by the United States, and offers this “tribute copy” of the popular collector’s and investment item. The ad states that the gold in the coins for sale is 0.9999 percent pure gold, and “your own copy of the $50 Gold Buffalo” can be bought for only $9.95. A year ago, the earlier version of the same coin by “National Collector’s Mint” sold for $19.95, so this is an even better deal, right? No wonder purchases are limited to five per caller.
A very careful review of the new gold coin ads, however, reveals that the advertised “Buffalo Tribute Proofs” are actually “gold-clad coins.” Rather than pure gold coins, they are actually what amounts to gold-plated coins. Listen carefully and you will and you will learn that the actual content of gold in each coin is 14 milligrams. That’s 14/1000th of a gram!
Please do the math, dear consumer. At $1,400 per ounce, that means the gold in these coins is actually worth 63 cents! At $9.95 per coin, that’s quite a markup.
The ads state that because “supplies are limited,” purchases will be limited to only five per customer, and the price can be guaranteed for only seven days. So those unfortunate enough to snatch up five of these coins will get $3.15 worth of gold for “only” $49.75! Interestingly, a year ago when pure gold sold at a lower price, this same company sold the same “Buffalo Tribute Proof” for $19.95. That earlier coin had a whopping 31 milligrams, worth $1.10 back then, about the same comparatively poor deal.
An actual “$50 Buffalo Gold Proof” coin is priced by the U.S. Mint at $11,060.
Buying gold can be a sensible investment for some people. Like anything else, it is an investment with risk. If you buy gold now at the current high of $1,400, and it dips back down to 2009 levels, you could lose your shirt. During a span of several months in 2008, gold went from $1,000 to $700. Just as many learned from the real estate bubble, gold prices (like real estate) don’t always go up.
If you are considering buying gold as an investment, be sure to watch out for common scams in this market. Here are the top five:
- Grade – True gold coins are graded, and prices can fluctuate greatly based on the grade assigned. A “mint condition” Gold Eagle coin can sell for $2,850, whereas the price of the same coin graded “very clean” (indiscernible to the amateur eye) can be $1,650. How honest is the assigned grade?
- Presentation – Be wary of gold coins encased in nice looking packages or coatings that prevent you from actually examining the coin. The seller might be hiding something.
- Gold Indexes – Some gold indexes cannot be trusted. The investment bank Salomon Brothers used to compile a gold index showing huge annual appreciation figures for gold coins, but these were based on a set of very rare coins, not the type commonly sold.
- Gold held in escrow – Afraid of losing your precious gold to robbers? Don’t worry, the helpful seller will hold the gold for you. Are you sure it even exists?
- Government seizure – In 1933, the government seized gold held in bank deposits, paying $20.67 per ounce per executive order. It is highly unlikely, but not impossible, that future circumstances could result in similar action.
Now we can add yet another potential scam to this list. Listen carefully, be sure to read all of the fine print, and do the simple calculation yourself. How much are you really paying for the actual gold in the coin?
Food Safety Regulations Overhauled by Senate
November 30, 2010
One too many bad eggs for The Senate. Not the Senators themselves necessarily, but bad eggs getting through the US food-safety system. Oh, and unsafe poultry, bad peanut butter and spinach too. Recalls of tainted food that sickened thousands, finally led major food makers to join consumer advocates in demanding stronger governmental oversight.
And that’s what led to Tuesday’s 73-25 passing of sweeping overhaul that strengthens the Food and Drug Administration in hopes of cracking down on unsafe foods before they harm people rather than after outbreaks occur.
Read more in the The New York Times article.
Is Your Thanksgiving Turkey Safe?
November 19, 2010
Before you take a bite of that Thanksgiving turkey (or leftovers), you may want to read on and make sure you’ve cooked that holiday bird well!
Consumer Warning Network reported a few years ago that the 2008 Farm Bill loosened federal regulation of poultry inspections by allowing state inspection programs take the place of federal inspections. With Thanksgiving and Christmas dinners around the corner, how’s that little bit of federal deregulation working out?
On November 14, the USDA announced the recall of 2600 pounds of cooked smoked turkey products that may be contaminated with Listeria monocytogenes, a deadly bacterial agent. The turkey products from New Braunfels Smokehouse in Texas had been inspected by the Food Safety and Inspection Service (FSIS).
Consumers Union recently tested 382 whole chicken broilers bought at over 100 supermarkets nationwide, and tested them for salmonella and campylobacter, the two leading causes of food poisoning. Two-thirds of the raw chickens tested showed signs of one or both of these dangerous contaminants. A similar test back in 2003 had found such contaminants in half of the chickens examined. On the other hand, another test in 2007 had found a higher rate of contamination.
The cleanest products came from Perdue chickens, but the worst came from Tyson and Foster Farms. Interestingly, all of the store brand “organic chickens” involved in the testing were free of salmonella. Of course, all chickens are presumably “organic,” but organic farmers usually follow more stringent standards in their smaller operations.
So, are we better off with less federal regulation? The jury is still out. Now that your local state inspector doesn’t have as many pesky federal inspectors looking over his shoulder, it remains to be seen whether the level of safety will suffer. Is it acceptable that only one out of three poultry products can be considered safe?
The recent Texas recall points out the importance of food safety inspections and the need to guarantee that governmental regulations in this area not be shortchanged in the push for “less government.”
With every three poultry purchases at your supermarket, two of them will probably have bacterial contamination. This is why it is so important to follow safe cooking rules whenever you roast that turkey stuffed with dressing.
UPDATE: Food Safety Regulations Overhauled by Senate
“Power Bands” – Improve Balance and Flexibility?
November 11, 2010
By Terry Smiljanich:
What will they think of next, these scientists? A simple rubber band with holograms on it, that improves your body’s balance, health and flexibility just by wearing it. Too good to be true? Yes.
Power bands supposedly work through the interaction of the holograms on the band (3D-like pictures created by scattered light) and your body’s “natural frequency.” The frequencies of the hologram resonate with your own frequencies, thereby promoting good health, better balance and flexible joints. And they only cost $134.40 for a lot of 50 bracelets. That’s only $2.69 apiece. Another company sells them for $69.95 (Australian dollars) and provides twice the number of holograms on their bracelets. As one seller candidly admits: “NO PROMISES, JUST RESULTS.”
You can even see a video “proving” that these miracle devices work. Watch as someone not wearing the bracelet is easily put off balance, but when he wears a bracelet, he maintains his balance perfectly. And this is a person initially skeptical of the device.
If you watch to the end of the video, you see how the trick is performed, even with someone not in on the trick. A simple matter of how you push. Stick your arms out, stand on one leg. When someone pushes down outwardly away from your center of gravit, you’re thrown off balance. When someone pushes down inwardly toward your center of gravity, “AMAZING!” you maintain your balance, whether you’re holding this remarkable product OR NOT.
Remember the five rules for sniffing out a scam? If it’s too good to be true, it isn’t true.
It only takes a moment to uncover the pseudoscience behind this product. Holograms are pictures – they don’t emit frequencies. Your body is not a huge battery, nor does it emit frequencies, unless you’re talking about the light waves bouncing off of you.
The product is pure bunk, but Amazon sells them, and you can buy them on line, even with your favorite college’s logo on them. Want to improve your balance and flexibility? Get a good workout at the gym.
Facebook Privacy Breach
October 18, 2010
Facebook is once again under fire for leaking users’ private information. This time, the Wall Street Journal is reporting that 10 Facebook applications, including the popular FarmVille, have been transmitting the private, personal information of its user’s, as well as the information of those user’s friends. Bottom line, tens of millions of Facebookers have been affected.
Many of the most popular applications, or “apps,” on the social-networking site Facebook Inc. have been transmitting identifying information—in effect, providing access to people’s names and, in some cases, their friends’ names—to dozens of advertising and Internet tracking companies, according to a Wall Street Journal investigation. Click here to read full story.
Top Reasons for Defriending on Facebook
October 11, 2010
Don’t tell anyone, but every once in awhile a friend becomes rather annoying, and you just have to do it. A new survey conducted by a University of Colorado business student tells us the top reasons why people are “defriended” on Facebook. Click here to watch this report from ABC 7 in New York.
And… drum roll please… here are the top five:
- Going on and on and on
- Talking Religion
- Talking Politics
- Racism
- Being Vulgar
Groupon: The New Coupon Craze
September 25, 2010
By Terry Smiljanich:
Looking for a bargain, but tired of all those paper coupons in your desk that expire before you remember to use them? Looking for fine wines at half price rather than just 50 cents off a tube of toothpaste? Welcome to Groupon, one of the fastest growing internet fads of the past few years.
Groupon, an internet group coupon site, is less than two years old and has already grown to become the latest dot.com fad, with $350 million in revenues, making its founder and CEO Andrew Mason a 29 year old multimillionaire. In fact, recent estimates of the company’s value range as high as $1.2 billion. With more than a million members, and people signing up every day, what has made Groupon so popular? Is it a great way to great deals, or is it just another trendy gimmick to suck dollars out of well intended shoppers who never end up using the coupon dollars they set a side?
Student Loan Debt Now Exceeds Revolving Credit Debt
September 24, 2010
From FinAid.org: Total student loan debt outstanding now exceeds total credit card debt outstanding for the first time ever! The seasonally adjusted figure for revolving credit in the Federal Reserve’s G.19 report (current report, historical data) was $826.5 billion in June 2010. (Credit card debt represents as much as 98% of revolving credit.) Revolving credit started declining in September 2008 when it reached a peak of $975.7 billion. The decrease is probably due a combination of higher minimum payments on credit cards, which were increased to 4% from 2%, lower credit card limits and tighter credit underwriting. Student loan debt, on the other hand, has been growing steadily because need-based grants have not been keeping pace with increases in college costs. Federal student loan debt outstanding reached approximately $665 billion and private student loan debt reached approximately $168 billion in June 2010, for a total student loan debt outstanding of $833 billion. Total student loan debt is increasing at a rate of about $2,853.88 per second.
Click here to view finaid.org’s realtime Student Loan Debt Clock!
Age Old Question – How Much Do I Tip?
August 27, 2010
Everyone’s gotta make a living, and, for some, tips make the difference between poverty line wages and a decent day’s pay. So, when it comes to providing a few extra bucks to a valet or furniture delivery guy, what are the guidelines?
For the answers we turn to one of our favorite business columnists. Kathy Kristof of CBS MoneyWatch gives us the latest low down on what to tip these days, and says, if you can afford it, try not to be cheap! Click here to read more in her column.
Who’s In Charge of Food Safety And What Is He Doing About It?
August 27, 2010
By Terry Smiljanich:
The latest outbreak of salmonella illnesses (2000 reports between May and July), traced to contaminated eggs from two major Iowa producers and involving more than half a billion eggs, raises once again the issue of food safety in America. Who’s in charge?
Until recently, the United States Department of Agriculture (USDA) had exclusive jurisdiction over inspection of egg producing facilities. Once eggs entered the marketplace, the Food and Drug Administration (FDA) had authority to investigate any problems. That has all changed under new rules, effective July 9, 2010, giving the FDA authority to inspect food production facilities along with the USDA.
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