Scott Carter, executive vice president of precious metals retailer Goldline International, says Rep. Anthony Weiner, D-N.Y., is flat out wrong in accusing Goldline of overcharging customers and using misleading sales techniques.
Weiner, a liberal, is really going after Goldline because it advertises on the talk shows of conservative commentators like Glenn Back and with conservative organizations such as Newsmax, Carter says.
“Goldline has been around for 50 years. It has an A-plus rating,” (from the Better Business Bureau), he said on Newsmax.TV. So there is no substance to Weiner’s charges, he said.
“Clearly, we have been targeted because of where and with whom we advertise,” Carter said.
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As for gold, the precious metal’s rally has more room to run, Carter says.
Gold has surged to a new record high above $1,295 an ounce in recent days amid concern about the weakness of the global economic recovery and exploding government debt.
And many top gold analysts project a price of $1,400 to $1,500 in the next 12 to 18 months, Carter points out.
“So absolutely there is upside potential for gold, though there’s no guarantee of that,” he said.
“The conditions driving the price of gold still exist. We still have a $13 trillion debt, we still have a $1.4 trillion deficit, we still have high unemployment, we still have high uncertainty in the economy. All of those factors are positive for gold.”
Carter notes that former Federal Reserve Chairman Alan Greenspan cited gold’s strength in a recent talk.
Greenspan said the precious metal’s ascent bears watching. Gold still constitutes the "ultimate means of payment," Greenspan said. The metal’s rise "is a signal there is a problem with respect to currency markets."
While that problem is now small, gold’s rise could be "the canary in the coal mine to keep an eye on," Greenspan said.
As for Carter, he says the Fed can’t continue its money-printing and quantitative easing indefinitely. “Eventually these bills come due, like they are now, and create difficult times for the U.S. and world economy,” he said.
“If we continue to spend more than we bring in, that’s going to create burdens on our long-term growth and will be a challenge for the buying power of the dollar.”
And a decline by the dollar suggests strength for gold, Carter points out.
He says it’s not impossible to conjure up a scenario under which the government will return the U.S. to the gold standard or confiscate gold holdings outside of coins, as President Franklin Roosevelt did in 1933.
“The U.S. government has proven it will take whatever action is necessary to protect the dollar,” Carter said. “If that means reconsideration of the gold standard or confiscation, you can’t rule it out. History is good guide on what’s happening.”
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