Goldline Might be Starting to Show Some Tarnish

I just called the Goldline guys:

First thing I asked, “If I buy gold from you when do I ever sell?”

The punk on the phone (and that is being charitable) said:

“Gold has never crashed.”

“If gold was to go again from $800 to $200 you would have plenty of warning to sell.”

I asked who was going to give me that warning. He said, drum roll please….they would. Everyone should call and have this conversation. Block your number and only give them your first name. Ask them the same questions I did before they get any details from you. It’s an experience!

23 thoughts on “Goldline Might be Starting to Show Some Tarnish

  1. I didn’t do your experiment, but I previously asked a fund manager a similar question.

    Q: What is your strategy for cutting losses when you are on the wrong side of the market?

    A: I cut my losses when I believe the underlying rationale for a trade has changed, not just b/c the mkt has moved against me. I do not used set stop/loss orders, but instead looking for the reasons for creating a trade to change as a sginal that it is time to exit

  2. Goldline clients can now join Soros and Paulson and other hedge fund managers in the gold trade. All aboard the train! That would be my sales pitch if I was in the gold business. Ride their coat tails.

    It is amazing that someone would watch that video ad and then fail to check to see if the dollar is actually falling and if inflation is rampant. NOT!

    Of course, eventually…….

  3. Nice Michael! Another thing I noticed about these commercials is the spokesperson (whether it be the Goldline guy, G. Gordon Liddy, etc.) always says they’ve been investing in gold for over 10 years. Really? You expect me to believe you just knew gold was going to make its big move 10 years ago? The reality is, they were probably loading up on dot com stocks 10 years ago.

  4. Someone is always selling something to someone…so I believe your experiment is moot or
    of little or no practical value or meaning; purely academic.

    You sell books and courses…do you have all the answers? I doubt it because then you would not be selling books and courses.

    I don’t see John Henry or Dunn or Kovner or Bacon selling anything but performance…do you have performance? Please post some trades? Do you trade? See my logic?

  5. To the issue at hand — Goldline’s “sell strategy.” It doesn’t exist. Your defense of Goldline sounds like you are a client who has put your full faith in them. If so, I can see the need for your aggression.

    I cover sell strategies on the web, in books, and in a film. Why are you defending Goldline’s lack of a sell strategy? Do I have the answer of a sell strategy? Yes. And I do trade my own account, but I am not running a fund or holding myself out as one. That’s not my role. If you don’t like the education business here (which has helped thousands for over a decade), that is your prerogative, but your arguments and logic show a lack of understanding about the issues.

    Nothing wrong with being new. but a closed mind will not help you in the long run.

  6. Don> If everyone could have been a trader, you would not find any person in any other business. Trading requires a lot more and hence very few actually trade.

    Just look at the number of advisors who hog the web space, it would amaze me if more than 5% trade on their own accounts. Most make money by selling their products.

    Compared to others, I feel that Michael is much better than the others. He showcases others returns, does not say MY returns without proof. Also, for a trend follower, its good to have a site where new info is available. I don’t know of any other site that can beat this in the variety of info provided (does not matter whether we agree with his views or not).

  7. Goldline along with all the other shills NEVER tell people when to sell. Ever see Peter Schiff or other talking heads say “Should my idea backfire, I advise you to sell”. They never do. They rather predict endless upside but never talk about potential downside. They leave investors with no plan how to handle adversary.

  8. I think people fail to understand is that unlike stocks, commodities are an unregulated market. If people spread rumors about a stock and it moves the price, the sheriff is likely to show up at the door with an SEC warrant and haul you off in handcuffs. You can do the same thing with commodities all day long and it’s perfectly legal, which is why I think we hear so much crap about gold.

  9. Goldline was telling people to ‘buy buy buy’ at $250. They are telling people ‘buy buy buy’ today, and if gold were to hit $5000, it would be ‘buy buy buy’.
    I doubt very seriously they will ever change that to ‘sell sell sell’………..EVER.
    Their business is selling gold.

  10. Ones the market has you by the balls your heart and mind follows.

    If everyone was so prepared for various possibilities there would be no trends.

  11. Goldline and other venders buy and sell making a profit on the spread…why are we thinking they are advisors!?

  12. Michael, I understand you trying to prove a point here, but you’re really reaching. Posting this is like asking why your broker doesn’t call you to tell you to get out of a losing trade in a self directed account… it makes no sense. Goldline is in the business of selling gold (mostly physical gold like coins, although they do “farm out” some IRA transactions), not advising you on when to sell it. Plus, do you really think the telemarketer in the call center who takes the orders for Goldline has any idea about the process? He’s just a minimum wage lackey.

    Goldline makes their profits by buying low and selling high just like the rest of us.

    As far as actual trading is concerned, if people are stupid enough to buy gold because the radio or TV told them to then let them buy it… I need someone on the other side of the trade when I sell.

  13. don,

    This question of Michael’s personal performance on specific trades keeps coming up in these comment sections. His performance is completely irrelevant. The question is, Do YOU find the information he provides valuable? Michael is an author and a consolidator…he finds the best traders in the world, collects their wisdom and presents it in an entertaining fashion. If HE didn’t do it, WE would have to…and I don’t have that kind of time. Even Tom Brady takes advice from a coach who can’t throw as hard as he can. But he listens to what the coach says because it works.

    I have every trading book ever written and I have filtered the collection down to 12 books that actually work for me…TF and The Turtles are two of those books.

    By NOT being yet another trade huckster, Michael keeps a professional distance between what he brings to us and his motivation: he wants to sell books/movies and courses. That’s it. And because he HAS to sell what works to earn a living rather than being a paid biased promoter of some penny stock, I know when I pick up something he writes that I will find at least one thing that I can use…and for me that can literally be worth millions.

    If you want a stock huckster with a record that you can follow, Jim Cramer”s on most weeknights. Good luck with that…you’ll need it.

  14. The spirit of Michaels argument is compelling and based on the exit strategy which all traders know is where the money is made.
    The average Joe can lose big without the correct approach especially following gurus bailed out by friends in high places.
    Michaels been saying this for years.

  15. With all the advertising for gold latly it reminds me of the old saying……
    Buy the rumor, and Sell the news.

  16. To DG Dye:

    I’ve read all the trading bookd, too. You’ve given us two of those books — what are the titles of the remaining 10?

  17. All of these gold commercials remind me of the Time Magazine indicator or the speech Ed Seykota gave that is featured in the preface of Stock Market Wizards (Schwager).

    Gold as an investment is a seemingly ludicrous proposition. Many gold bugs (Peter Schiff will perpetuate the “worst case” and “sh*t hits the fan” scenarios. But in these situations, how much value is there for your gold? What can you do with it? You cannot eat it, you cannot make your house from it and you cannot use it for heat or an energy source. Furthermore, gold has never gotten back above its inflation adjusted highs; it’s the ultimate losing investment.

    As a Libertarian (with anarcho-capitalist leanings) it may sound dichotomous for me to say it, but gold is simply an overhyped fiat. All arguments for it are the same ones that can be made for the US Dollar or any other paper currency.

    I’ll let the sheep keep buying things based off of their political opinions or some phony fundamentals, but I, as a trend-follower, have a strong disconnect between my trading and my politics.

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