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Gold frenzy: Is Glenn Beck's favorite metal a good investment?

Rush for precious metal shines, dims on investors

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  • no fit in SG St.George, Utah
    May 7, 2012 7:41 p.m.

    What are the gold hoarders planning to purchase when the world is destroyed? Keep hearing that is what their biblical verses are predicting.

  • BYU Blue Ferron, UT
    May 7, 2012 11:27 p.m.

    "Civilized people don't buy gold; they invest in productive businesses." -Charles Munger

  • UtahBlueDevil Durham, NC
    May 8, 2012 5:11 a.m.

    Gold doesn't produce jobs. Gold doesn't produce products. Gold doesn't do anything that creates value, I am one of those whacko people that think capitalism is a wonderful thing, but that it needs to be responsible. Responsible capitalism in the end improves everyones standard of living.

  • My2Cents Taylorsville, UT
    May 8, 2012 6:13 a.m.

    I have heard the Glen Beck comments and promotional claims about gold, but you have to remember one thing, he is advertising this metal as an advertiser with a script. If he is personally trying to promote it as an investment then he is violating the anti trust laws because he is not an investment counselor.

    The key to investment in gold/silver is do not buy collectible or old gold as an emergency cash supply. Do not buy paper gold/silver as shares, buy tangible physical gold/silver bullion. Paper gold/silver cannot be redeemed to get tangible gold/silver. Tangible is physical possession. Paper metals have no value in emergency and our last 2 bouts with market (2008 $ 2010) crashes have proven that.

    Invest in business? What business can offer what metals can offer? To buy or invest in stocks requires money beyond the common man budget. Investing in debt of the stock market is investing in failure and bankruptcy.

    People want tangible money for when the financial industry goes in to meltdown and tangible cash will be the new financial standard as Visa cards and ATM's and borrowing will not work.

  • Cats Somewhere in Time, UT
    May 8, 2012 6:51 a.m.

    This is what I've always said. You can't eat gold. If you take it to a bank, you will only be given the face value of the coins--that's assuming it is U.S. legal tender. I just don't really know what to do with it.

    If you invest in equities, you are investing in something that actually produces something.

    Gold is only worth something because people THINK it's worth something.

    In a REAL emergency, food will be much more valuable than gold. That's why we should follow the word of a Prophet and keep a year's supply of food on hand. Otherwise, get out of debt and invest in a diversified portfolio of real estate, equities and bonds. Keep enough liquidity to get through 3-6 months if a financial emergency arises such as losing one's job.

    Gold has historically been a lousy investment. It keeps up with inflation and that's about all.

    Of course, if we didn't have such an incompetent president, people wouldn't be this scared.

  • xert Santa Monica, CA
    May 8, 2012 7:00 a.m.

    I'm going to buy a bunch of it and horde it. Then, when the world collapses, I'll still have my gold. My lovely, lovely gold. No gas? No food? I care not! I'll sit in my hidey hole and jingle my lovely gold coins and bars! I'll hold them up to the sunlight and watch them glimmer and gleam. Other's may come for them, but oh---just let them try to take my gold pieces. Just let them....I'll have some fake gold that I will give them so they go away. Then I'll go back to jingling my precious, precious gold pieces.

  • LDS Liberal Farmington, UT
    May 8, 2012 7:05 a.m.

    Brigham Young warned Mormons about aquiring Gold and other precious things...

    It was tantamount to Idolatry and lead to the ultimate downfall of the Nephites.

    Who should we believe or listen to?

    Brigham Young
    or
    Glenn Beck?

  • Mountanman Hayden, ID
    May 8, 2012 7:37 a.m.

    When the government prints more paper currency and increases the money supply the value of the paper they print goes down commensurately and gold is an excellent hedge against inflation and devaluation of the US dollar. Let’s say for whatever reason the value of the US dollars continues to deflate (a certainty) and your 401k or savings value drops accordingly. You have two choices: #1: Lose your money or most of it and end up with piles of worthless paper. #2: Invest in commodities (precious metals), real estate or anything that in increasing in value against the falling US dollar! On the other hand if things get really nasty, (and they will) as Cats said, you can’t eat gold or real estate and if you take a gold bar to your grocery store, what will they do with it? Food storage may be more valuable than gold and land on which you can produce food may be more valuable than gold. Bottom line: Be prepared!

  • stevo123 slc, ut
    May 8, 2012 7:58 a.m.

    Gold can be a reasonable investment as a hedge against inflation. The products that Beck pushes have too much of a spread to be any good. Mr Beck is pushing (and hoping ) for a Mad Max scenario, he borders on the paranoid

  • Ernest T. Bass Bountiful, UT
    May 8, 2012 8:13 a.m.

    I pulled all the equity out of my house and cars to buy gold, because Glenn said I should. I also cashed out my 401K.

  • Gildas LOGAN, UT
    May 8, 2012 8:21 a.m.

    You buy when prices are low and sell when they are high; isn't that the sensible rule? This seems to depend on most people doing the opposite: buying when prices are high and panicking when the commodity looks like tanking big time. Just now I believe that gold prices are still high, maybe way too high.

    Still I agree it would be far far better to save food and maintain your home in good repair than to waste time, effort and money on a pretty metal of limited use to most of us. Food, clothing and basic supplies, and a basic domicile will always be valuable to you.

  • Wally West SLC, UT
    May 8, 2012 8:25 a.m.

    @ BYU Blue 11:27 p.m. May 7, 2012

    Brother Glenn isn't civilized?

    @ Cats 6:51 a.m. May 8, 2012

    "Of course, if we didn't have such an incompetent president, people wouldn't be this scared."

    Which Ivy League Grad not not named Clinton are you referring to?

  • mark Salt Lake City, UT
    May 8, 2012 9:07 a.m.

    "If he is personally trying to promote it as an investment then he is violating the anti trust laws because he is not an investment counselor."

    Now why doesn't that surprise me that you don't understand the anti-trust law.

    "people wouldn't be this scared."

    I'm not scared, don't know anybody that is, but then again, I don't listen to the people that tell me I should be.

  • Cats Somewhere in Time, UT
    May 8, 2012 9:16 a.m.

    Dear Wally West:

    We only have one president and, yes, he's an Ivy League grad. Unfortunately, he's also in completely over his head. So much of the economy and so much of why people invest relies on psycholocy. Right now, people are scared to death and they don't know what to do. They are really afraid of the future.

    I'm a better historian than prophet, but if we could get a man in the White House that, at least, has some idea what's going on, we might have a chance to calm things down.

  • onceuponatime Salt Lake City, UT
    May 8, 2012 9:27 a.m.

    The Deseret News has a vendetta against Beck otherwise they would be attacking all investments because you can lose money on them. If you don't understand that any investment can lose money maybe you shouldn't be investing. Stop blaming others for you choices. If you invest money you may lose it all. That includes real estate, stocks, bonds etc. Let's not pretend that gold is any different. If you had invested in Gold when he first started promoting it you would have made money, let's not pretend otherwise, but if you don't sell in time you may lose money. This can happen with any investment type. It's called buying low and selling high.

  • Michael De Groote
    May 8, 2012 9:39 a.m.

    THE REST OF THE STORY
    It didn't quite fit in the article, but the opening story Bill Haynes told about Gene ends like this:
    Gene had called Haynes to check on the prices for the $72,000 of "Saint-Gaudens" historic $20 U.S. gold coins he had bought to give his invalid brother a more comfortable life. When he learned other dealers were selling the same grade coins for about $48,000, Gene said he would see if the dealer would take them back.
    Haynes said he didn't think they would, but Gene countered that they had advertised on a Christian radio program, so they would understand the circumstances with his invalid brother.
    Haynes called Gene back later to see if he was able to return the over-priced coins.
    "How did it go?" he asked Gene.
    "Great!" Gene said enthusiastically.
    "Did they give you your money back?"
    "No," Gene said, "but they gathered some of the other brokers on the phone and they held a prayer circle for my brother."

  • NotFromUT BOUNTIFUL, UT
    May 8, 2012 9:59 a.m.

    @ My2Cents: "The key to investment in gold/silver is do not buy collectible or old gold as an emergency cash supply."

    I couldn't agree more! For investments....NEVER BUY COLLECTIBLES.

    A few years ago I bought some CIRCULATED / FAIR condition gold coins. Since then the prices have just about doubled....As @ Gildas referred to :"Buy Low / Sell High"...now it's time to sell, and pay off debt.

    Circulated coins are actually a decent way to get bullion, because the price is based more on the metal value than on "collectible" value.

  • Ernest T. Bass Bountiful, UT
    May 8, 2012 10:05 a.m.

    If society really collapses, like so many people want it to, a loaf of bread would become more valuable than gold. What value will gold have when you're just trying to feed your family?
    The belief in the end of the world has become big business. Too bad it's a total scam. I have a friend hoarding gold, silver, guns and ammo.
    In 40 years when he's dying his kids are going to wonder why he purchased thousands of rounds of ammo.

  • Brahmabull sandy, ut
    May 8, 2012 10:10 a.m.

    LDS Liberal

    I just can't help but laugh when people make comments that are contradictory to truth. You stated that
    "Brigham Young warned Mormons about aquiring Gold and other precious things...

    It was tantamount to Idolatry and lead to the ultimate downfall of the Nephites."

    Do you not realize that the mormons started their own mint and minted GOLD coins?? Do you also not know that the mint was supervised directly by BRIGHAM YOUNG??? Not only that but Brigham sent prospectors to california to bring back gold dust to mint.

    Leonard J. Arrington, church historian states that "In November 1848 Brigham Young commissioned John Kay to make dies and coin the gold dust. The inscription for the Deseret coins was designed by Brigham Young, John Taylor, and John Kay. On one side, the phrase "Holiness to the Lord" encircled the ancient emblem of priesthood, a three-point Phrygian crown over the all-seeing eye of Jehovah. On the other side, the words "Pure Gold" and the denomination encircled clasped hands, the emblem of friendship."

    Not only did Brigham not view it as idolatry, he minted pure gold coins with Holiness to the Lord printed on them!!! Read history.

  • Hank Pym SLC, UT
    May 8, 2012 10:14 a.m.

    @ Ernest T. Bass 10:05 a.m. May 8, 2012

    Get back to me on Dec 22 of this yr. I'll be the one doing a impersonation of Mad Max.

  • LDS Liberal Farmington, UT
    May 8, 2012 10:39 a.m.

    @Brahmabull
    sandy, ut

    Tell you what, You Read some history.

    Brigham Young preached constantly about the evils of gold and the accumulation of wealth.
    Industry and wealth are not the same.

    And I know all about the coins – We need currency.
    There is nothing wrong with that.


    But,
    SPECULATING on the markets or hording and acquiring is not even the same as minting currency to be used in commerce.

    But go ahead and follow your Korihor on the radio.

    I’ll stick with the Prophets actual words – and their warnings about speculating,
    And I will take Glenn Beck (the showman’s) advertising trickery with a grain of salt.

  • Brahmabull sandy, ut
    May 8, 2012 10:51 a.m.

    LDS LIBERAL -

    You can't have it both ways. You stated that Brigham Young warned mormons about acquiring gold coins (you never cited your quote, or what it actually said). He supposedly said that acquiring gold coins was idolatry. Yet, he uses that same evil metal and mints gold coins out of them. Not only that, but to add insult to injury, he mints them with symbols of the religion on the front and back, as if to say that god approves of these gold coins. Now why would he warn against people acquiring them, but then provide the means of them acquiring them by minting locally?? It doesn't make sense right? He could have minted them in brass, silver, copper - anything else if he thought gold was evil.

    I never stated that I follow Glenn Beck - in fact I despise the guy. But using a prophets supposed(uncited) "opinion" on gold in the 1800's isn't really sound advice. Especially when he did not even follow his own teachings, if he did in fact tell members not to acquire gold.

  • Brahmabull sandy, ut
    May 8, 2012 11:00 a.m.

    LDS LIBERAL cont'd

    I don't think throwing the whole "prophets" teachings in on a gold discussion is relevant. Gold speculation is no more wrong than betting money on stocks - hoping for big gains and betting which way they will go. It is all the same - trying to make some money by predicting the market. Nothing wrong with that in my mind. It is like anything else - if you do it in moderation with money that you can afford to lose than I see no problem with it. For me, I put what I can into gold bullion and coins - my faith in the dollar is low and I think gold and silver will always be functional. If I lose some value in them along the way so be it. It can't lose more value than the dollar in the long run IMO. So if I am wrong oh well, wouldn't be the first time, and sure won't be the last. But it's not the end of the world. I certainly don't do it because Glenn Beck said so, and I won't stop doing it because some man 150 years ago said not to.

  • TOO Sanpete, UT
    May 8, 2012 11:22 a.m.

    Gold prices go up as inflation goes up.

    You may not be able to "spend" it per se, but if times get too tough, you can cash it in. It will always be worth something.

    I wish I could afford a little bit, but it is expensive. The prices have absolutely sky rocketed the last few years. If you bought some when it was 200 bucks an ounce you would be able to have some profit if you sold it now.

  • atl134 Salt Lake City, UT
    May 8, 2012 12:17 p.m.

    @TOO
    "Gold prices go up as inflation goes up.
    "

    We've had some of the least inflationary years the past few years while gold has surged so it would seem to be something else going on. (Remember, gas and food may have gone up but housing crashed, overall inflation has been in the low single digits the past few years and even flirted with deflation for a while).

  • Michael De Groote
    May 8, 2012 12:26 p.m.

    An article from The Telegraph by Emma Simon last year ( http://tgr.ph/hXBhxS )had these two quotes:

    "It is thought that an ounce of gold bought 350 loaves in the time of Nebuchadnezzar, the king of Babylon who died in 562BC. An ounce of gold still buys roughly 350 ordinary sliced loaves today, showing that over 2,500 years gold has proved a very effective hedge against inflation, at least when it comes to everyday essentials."

    But people don't live in the long term:

    "Although gold is a good inflation hedge over the long term, this isn't always the case over shorter, more realistic time frames over which the typical investor is more likely to hold the asset. If you bought gold in the Eighties, for example, it hasn't proved to be the most effective hedge against inflation since then. If it had kept pace with prices, it would now be worth about $2,600 an ounce."

  • Madden Herriman, UT
    May 8, 2012 1:22 p.m.

    I only hear Beck once in a while now. His show used to be on during my commute and used to be much funnier. However, even when I hear it now, I have never once heard him push gold as an investment, much less as your ONLY investment, but as one way to insure your wealth against inflation. Which is exactly what you'll find all over the web on the topic. This board seems to be full of people who love to twist words as long as they can make a person they dislike look bad. Why do you feel the need to lie about how some radio personality advertises gold?

  • LDS Liberal Farmington, UT
    May 8, 2012 2:04 p.m.

    Brahmabull
    sandy, ut

    The whole concept of Speculating is wrong for many reasons,
    It is a form of gambling, and is about getting something for Nothing.
    Money Changing is another name for it.
    I runs 180 degress against the Law of the Harvest.

    Numerous Prophets have publically spoken out against it since the Prophet Joseph began by speaking out to the Saints against Speculating in banks in Kirtland.
    Brigham spoke out against speculating in Gold.
    Pres. Heber J. Grant in the 1920’s.
    And most recently Pres. Hinckley adamantly spoke out against speculating in other markets, like Real Estate and WallStreet.

    FYI –
    The bank speculators eventually failed in Kirkland.
    The Gold speculators eventually failed in the later 19th century.
    The Markets crashed from speculating in the 1930’s.
    And we are now still suffering from the Speculators Pres. Hinckley warned about, and I quote “There is a portent of stormy weather ahead to which we had better give heed." Oct. 1998

    If you have excess, by all means - chance it.
    Otherwise, we've been told to avaid it.

    Getting gain - something for nothing - is Master Mahan economics 101.

  • cjb Bountiful, UT
    May 8, 2012 2:23 p.m.

    For emergencies I like food storage, a camp stove and fuel and water storage.
    For investments I like studying business and then buying either stocks or junk bonds
    in specific companies.

    Gold has already had a big run up. So its not that interesting to me.

  • Oatmeal Woods Cross, UT
    May 8, 2012 3:06 p.m.

    Brahmabull,

    Perhaps you should reconsider. Brigham minted coins for circulation, not investment purposes. He criticized those who hoarded goods at the expense of their brethren. And his criticisms of idolatry and mining in Utah are well-documented.

    Nothing could be further from the spirit of Brigham Young's teachings than this Beck-inspired gold craze.

  • LDS Liberal Farmington, UT
    May 8, 2012 3:12 p.m.

    But pause for a moment, and suppose you had millions …a pile of gold, what good would it do you? You could not eat it, drink it, wear it, or carry it off where you could have something to eat.
    The time will come that gold will hold no comparison in value to a bushel of wheat.
    Gold is good for nothing, only as men value it. It is no better than a piece of iron, a piece of limestone, or a piece of sandstone, and it is not half so good as the soil from which we raise our wheat, and other necessaries of life. The children of men love it, they lust after it, are greedy for it, and are ready to destroy themselves, and those around them, over whom they have any influence, to gain it” (Journal of Discourses, 1:, p.250).

    ~ Brigham Young (aka., NOT-Glenn Beck)

  • Redshirt1701 Deep Space 9, Ut
    May 8, 2012 4:34 p.m.

    To "LDS Liberal" there is a HUGE difference between speculating on commodities and owning gold as a protection against inflation.

    So, tell us, where have we been told to not obtain riches (which would include gold)?

    Per Jacob 2:19 And after ye have obtained a hope in Christ ye shall obtain riches, if ye seek them; and ye will seek them for the intent to do good—to clothe the naked, and to feed the hungry, and to liberate the captive, and administer relief to the sick and the afflicted.

    Sounds like obtaining riches is ok with God when the currency was gold, silver, and precious metals.

    So the burden is on you, when have we been told that Gold is wrong to own?

    If gold brings on such evil, why do we adorn the temples with gold?

  • Michael De Groote
    May 8, 2012 5:27 p.m.

    In article from The Telegraph by Emma Simon last year ( http://tgr.ph/hXBhxS )had these two quotes:

    "It is thought that an ounce of gold bought 350 loaves in the time of Nebuchadnezzar, the king of Babylon who died in 562BC. An ounce of gold still buys roughly 350 ordinary sliced loaves today, showing that over 2,500 years gold has proved a very effective hedge against inflation, at least when it comes to everyday essentials."

    But people don't live in the long term:

    "Although gold is a good inflation hedge over the long term, this isn't always the case over shorter, more realistic time frames over which the typical investor is more likely to hold the asset. If you bought gold in the Eighties, for example, it hasn't proved to be the most effective hedge against inflation since then. If it had kept pace with prices, it would now be worth about $2,600 an ounce."

  • DVD Taylorsville, 00
    May 8, 2012 7:22 p.m.

    Interesting... so what about silver and platinum?

    @LDS Liberal, that's a good quote and worth consideration in this context especially. Practicality.

    @Redshirt, you quoted the whole of Jacob 2:19, which is good as it seems you were trying to present a context of LDS spirituality? When you obtain the wealth, it's for what purpose? And then it isn't wrong in that spirit. It isn't being hoarded, and it's less likely that harmful things are happening in pursuit of the gold/wealth if someone is in that mindset.

  • UtahBlueDevil Durham, NC
    May 9, 2012 4:42 a.m.

    For those who don't remember Glen's rants on gold, just go to YouTube and do a search on Beck and Gold. He was at his best in his ever oh so dramatic presentation on the value of the dollar, and his pontifications of what it will do to the value of gold, using a lift to show just what will happen. He often in 2009 claimed the eminent collapse of the US currency. these were usually followed by a commercial from some gold dealer. So if you didn't here his predictions, you just were not listening veery hard. I believe at one point he was promising us gold at $4,000 by now.

  • Brahmabull sandy, ut
    May 9, 2012 8:20 a.m.

    Lds liberal -

    I agree with the opinion that speculating is risky... however..

    Joseph Smith was the one who opened a bank in Kirtland. He took in money from members. The bank failed. Prophetic?? I think not.

    Also, just because you deem something as wrong because the leader of your denomination has advised against it 150 years ago doesn't mean that the remaining people have to follow what your leaders say. It sounds like decent advice, but it is still opinion. Remember, past prophets words are not doctrine, but opinion for that time. I get the whole hoadring aspect, but you caould say the same thing about paper money - what good will it do when it crashes? Answer, it will be worthless. And the Hinckley statement, well it was very general in detail, didn't tell exactly what was going to happen. Most prophets say things like "tough times ahead", who knows what they mean. It is like a fortune teller - if you give vague enough statements on any subject you will be right - eventually. Stocks and speculation aren't getting something for nothing, real money is on the line.

  • Hank Pym SLC, UT
    May 9, 2012 12:19 p.m.

    re: Brahmabull 8:20 a.m. May 9, 2012

    **Joseph Smith was the one who opened a bank in Kirtland. He took in money from members. The bank failed. Prophetic?? I think not.**

    As Jesse James once said, "Its easier to own a bank than rob one."

  • Hallie Brady PAssaic, NJ
    June 14, 2013 11:42 p.m.

    You have some excellent points. However, I think that overall it is safe to invest in gold because it’s value is far more reliable than any currency. While the dollar has decreased in value, gold’s value continues to rise. However, it is important to find a reliable resource to purchase it from. I use APMEX because they are reliable and trustworthy with no hidden fees and fair prices.

  • Norma Fay Wanaque, NJ
    July 9, 2013 10:55 p.m.

    It is definiftely a wise idea to Buy Gold , as long as you find a reputable company to do business with. I use APMEX for my gold investments because they have fair prices and have proven to be reliable. They make it easy to choose wisely and, while the price of gold does fluctuate it has proven to be far more stable than the price of the dollar. That value has continued to decrease over time.