Foster: New ‘gold fever’ feeds on right-wing fears

Published 6:00 am Friday, September 8, 2023

“Gold fever,” the intense desire to possess the precious mineral, has afflicted humans even before biblical times. Discoveries of prehistoric jewelry and idols made from gold can be found in many of the world’s museums.

What’s modern, however, are new ways that unscrupulous companies are enticing gold coin buyers through the use of advertising, particularly on right-wing media outlets.

Fox News viewers are likely familiar with Lear Capital, a Los Angeles company that sells gold and silver coins. In recent years, the company’s ads have been a constant presence on Fox airwaves, warning viewers to protect their retirement savings from a looming “pension crisis” or “dollar collapse.”

The Washington Post reported recently that one such ad caught the attention of Terry White, a disabled retiree from New York. In 2018, White invested $174,000 in the coins, according to a lawsuit by the New York attorney general — only to later learn that Lear charged a 33% commission.

Over several transactions, White, 70, lost almost $80,000, putting an enormous strain on his finances, said his wife Jeanne, who blamed Fox for their predicament.

“They’re negligent,” she said. A regretful White said he thought Fox “wouldn’t take a commercial like that unless it was legitimate.”

The legitimacy of the gold retirement investment industry is the subject of numerous lawsuits — including allegations of fraud by federal and state regulators against Lear and other companies.

Meanwhile, gold coin advertising has become a mainstay of right-wing media. The industry spends millions of dollars a year to reach viewers of Fox, Newsmax and other conservative outlets, according to an analysis by the Post.

The Post also found that ad pitches to invest in gold coins are a daily presence in media that caters to a right-wing audience and often echo conservative talking points about looming economic and societal collapse. The Post found no similar ads in mainstream and left-wing media.

Readers are left to draw their own conclusion about the legitimacy of investing in gold coins, but I suspect that many of these buyers are fervent Donald Trump supporters. What else explains why millions of dollars are sent to a variety of his campaign funds to pay for not only his campaign activities, but also his lavish lifestyle and now his mounting legal bills?

One of his PACs (political action committees) said it has paid out more than $40 million in legal fees during a recent reporting period. If people send money to him willingly, you can’t call him a con man, but for a supposed billionaire, he has no shame in taking small donations from his minions.

In a different vein, the devastating fire in Maui prompted two letters in the Aug. 19-20 News-Journal weekend edition that I want to respond to.

First, Roger Young complains about the high cost of operating Air Force One on President Biden’s recent trip to the island to show his support for the victims. At least Biden brought words of encouragement to thousands suffering from the wildfires. Perhaps Mr. Young should calculate the cost of Trump flying to Puerto Rico after a major hurricane where all he did was toss rolls of paper towels to a small gathering.

A second letter from Jerry King said “the victims of the fire in Hawaii are to receive a whopping $700 per victim.” That amount is made available to help victims buy food, water, clothing and other essentials immediately after the fire. Congress also routinely enacts supplemental legislation to compensate victims of natural disasters after the event.