Rep. Anthony Weiner, D-NY, has issued a report accusing gold retailer Goldline International of ripping off its customers. If you've spent five minutes listening to conservative talk radio, you've probably heard of Goldline -- the company is a frequent advertiser for hosts like Glenn Beck and Mark Levine. I don't care what your personal political views are. But as your financial adviser, I can say that it's a bad idea to buy any asset that's been marked up substantially beyond its true market value. You don't buy a car for $40,000 when a neighboring dealership has the same model for $30,000, you don't buy mutual funds with exorbitant expense ratios, and you don't buy gold from Goldline.
If you must invest in gold (and given that it's been flirting with all-time highs, I'm dubious that it's a great time to buy), you'd be better off looking elsewhere. Consider an exchange-traded fund that tracks the price of gold such as SPDR Gold Shares (GLD) or iShares COMEX Gold Trust (IAU), both of which feature a reasonable .40 percent expense ratio.
DISCLAIMER: Wendell the Pug has not made any investments in gold, aside from his Mr. T starter set.
Saturday, May 22, 2010
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Wendell! How did you get so smart so young???
ReplyDeleteHank's mom
Where can I get my hands on a Mr. T starter set of my own?
ReplyDeleteHmmm, good question, Hank's mom. I think I must've been born that way, because I haven't even attended obedience school.
ReplyDeleteAs your financial adviser, Kelebek, I'd advise against purchasing a Mr. T starter set. The dozens of gold chains required often quickly lead to buyer's remorse. However, if you must, I'd shop around for a good deal -- find a secondhand starter set on eBay or Craigslist.