Ads promoting gold coins have become a common sight on conservative outlets such as Fox News and Newsmax. These ads often target viewers with warnings about an impending pension crisis and dollar collapse, urging them to protect their retirement savings. However, some viewers have fallen victim to fraudulent practices by these companies, resulting in significant financial losses. Viewers like Terry White, a disabled retiree from New York, invested $174,000 in gold coins, only to discover later that a hefty 33 percent commission had been charged by the company. As a result, White lost nearly $80,000, causing severe financial strain. Jeanne, White’s wife, blames Fox News for their predicament, stating that the network should have exercised greater due diligence before airing such ads.
While these gold retirement investment companies face allegations of fraud by federal and state regulators, their advertising continues to be a mainstay on right-wing media. These companies spend millions of dollars each year to reach viewers on conservative outlets like Fox, Newsmax, and others. Prominent figures, including former Fox News host Bill O’Reilly and former New York mayor Rudy Giuliani, have endorsed these gold coins. Additionally, ads for rival companies have appeared on Sen. Ted Cruz’s podcast and during Newsmax broadcasts of former president Donald Trump’s political rallies.
A comprehensive analysis conducted by The Washington Post reveals that these gold coin investment ads are a daily occurrence in media platforms catering to a right-wing audience. These ads often echo conservative talking points about an imminent economic and societal collapse, playing into viewers’ fears. Remarkably, no similar ads promoting gold retirement investments were found in mainstream or left-wing media sources.
While the revenue, profits, and ad budgets of these “gold IRA” companies are mostly undisclosed due to their private nature, court documents indicate that Lear Capital, for example, generates around $200 million in annual revenue. Experts estimate that the overall industry revenue likely reaches $1 billion a year. The gold IRA industry has faced numerous lawsuits over the past decade, with federal regulators suing four companies, alleging that investors were charged exorbitant rates, sometimes up to triple the value of the coins.
Protecting oneself when purchasing gold coins for investment purposes can be challenging due to the industry’s lack of substantial regulation. Selling gold, even as a retirement investment, falls under very thin regulatory oversight. Experts emphasize that media outlets like Fox have no obligation to reject advertising from gold IRA companies, despite the allegations of fraud. Courts are hesitant to impose liability on publishers in such cases. However, it would be reasonable for these outlets to investigate the claims made in the ads and contact the advertisers for more information before running them.
Both Fox News and Newsmax declined to comment on the matter. Lear Capital, on the other hand, defended its operations, stating that most of its customers would have made a profit if they had sold at a recent market high. The company settled a lawsuit filed by the New York attorney general in 2021, agreeing to reimburse affected customers and provide clearer fee disclosures. Lear now allows customers 24 hours to cancel their purchases. However, the company did not disclose its advertising expenditure on Fox News. Lear’s spokesperson emphasized that the network is not the primary source of their customers and that U.S. political dynamics are intertwined with monetary policy, making Fox a logical platform for their advertising.
The gold IRA industry’s advertising tactics often mirror accusations frequently made against Democratic politicians on conservative news segments. The ads portray the coins as a secure investment against economic uncertainty and social unrest. These coins, while meeting IRS rules for retirement investments, are typically exclusive to the companies selling them, resulting in higher markups compared to mainstream coin retailers. Coin experts argue that customers could obtain more ounces per dollar by purchasing standard products like Canadian Silver Maple Leafs. However, the ads fail to disclose these details and instead focus on current events, such as bank failures and discussions of inflation.
Gold IRA companies frequently exploit major political figures and events for their advertising. For instance, they utilize the Trump rallies as significant marketing opportunities. During a live broadcast of a Trump speech, an ad for a gold IRA company aired alongside the coverage on Newsmax. Additionally, these companies send email ads with subjects like “Retirement Funds at Risk From a Biden Recession,” often featuring endorsements from personalities like Bill O’Reilly.
In conclusion, ads promoting gold coins as retirement investments have become a regular feature on conservative media outlets. Despite allegations of fraud, these companies continue to spend significant amounts of money to reach their target audience. While media platforms have no legal obligation to reject these ads, it would be reasonable for them to exercise greater caution and investigate the claims made in these advertisements. Customers should also be vigilant and seek more information before making any investments.
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