House panel to probe gold coin deals

two hands holding gold coins
two hands holding gold coins

The TV ads for gold seem everywhere on cable and radio conservative talk shows. Some feature Glenn Beck. Gold, they suggest, is a hedge for the country's economic woes.

Now Congress is about to take a look at complaints that gold coins and commemoratives are dubious as investments and that the ads mislead consumers.

Rather than being gold bullion-like valuable assets, likely to rise in value as gold itself rises, a congressmen is asking whether the ads offer often overpriced trinkets of far less value than real gold.

"The frenzied marketplace has become rife with scam artists ready and willing to take advantage of consumers," said U.S. Rep. Rep. Anthony Weiner, D-N.Y., in announcing plans for a Sept. 23 hearing of a panel of the House Energy & Commerce Committee.

Weiner is offering legislation that would require sellers of gold coins and commemoratives to make clearer the likely investment value of the products. Scheduled to testify is Goldline International's executive VP Scott Carter.