2 votes

Precious Metals and Cognitive Dissonance

I was listening to a radio show this evening that was focused on gold and silver. It is a regular show (daily I think) and every time I listen to it I feel like I'm listening to an infomercial. They have good information, and they often play or quote Ron Paul, but the entire time they are trying to sell people their gold and silver.

So today my cognitive dissonance flag went up on it. I realized that if gold and silver are so great of an investment why are they trying to sell it for Federal Reserve Notes?

I am not at all saying at I think investing in precious metals is a bad thing. I would just like some input from the DP community on this subject. Maybe there is a simple answer I am missing.

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yawnnnnnn.... how else is the

yawnnnnnn.... how else is the public going to get. You must have distribution.

But I don't think these are

But I don't think these are the guys that own the mines. Maybe they get wholesale prices or something. It's just the whole "buy from me! buy from me!" that raises the flags.

Maybe they like

buying gold and silver, have knowledge about it, and are trying to spread it to as many other people as they can. If someone gives out nutrition advice, is there cognitive dissonance if they tell you that protein is good, and then try to sell you protein powder?

Most likely, they are selling gold and silver for dollars as a business, and using the profits to buy gold and silver for themselves. Or, I suppose there's a possibility that they are scam artists trying to sell people gold and silver so that they can invest in treasury bonds. Seems highly unlikely, though.

I really don't see what the problem is. If you're going to run a business, you pretty much have to transact in dollars. The fact that there's a radio show run by people who are trying to sell you gold and silver has nothing to do with whether or not gold and silver are good things to purchase.

That being said, I probably wouldn't buy gold or silver from some guys that I heard on the radio because its likely that their prices are going to be higher than other dealers.

Thanks

Maybe I am missing the business model. Every "conservative" talk show host has a gold sponsor. I can understand the hosts wanting to get the word out to like-minded people, but it is those that are selling it that confuses me.

There is just some sort of cognitive dissonance going on when I think about it fully. Maybe because they are all trying SO hard to sell it.