Hoarders Say Gold Is Last 'Safe' Investment
Jan. 28, 2011 — -- The price of gold may be trading at a three-month low, but that is not stopping people from hoarding the precious metal in their homes, bank vaults or even in hiding places.
For some, fears of the country's growing levels of debt and inflation make currency seem less dependable, and gold and other precious metals seem rock solid.
Pete Sorrentino, vice president of Huntington Asset advisors in Cincinnati, has investments in gold bars and bullion coins and manages a $95 million fund for his clients, 2.6 percent of which is actual gold held in a depository. He said the low price of gold makes it an ideal time to buy it as global financial markets fare well.
"This is an ideal time for anyone who has missed out and want participation in gold, as long as the attention is focused on problems in Europe, and we tend to get fairly good reports in earnings season," said Sorrentino. "You'll see people continuing to favor financial assets over the precious metals."
He said he prefers coins over bars because the assay, or examination process, is easier. He said coins are more difficult to counterfeit and manipulate than gold bars. But with the lower price of gold these days, he prefers silver coins.
"I tend to give them out as gifts," said Sorrentino, claiming he is not vast hoarder. "The people to whom I gave them a couple years [ago] were quite happy later."
Gold was trading at a record high at the end of 2010, with its contracts trading at a peak of $1,430 in December.
On Thursday, it was trading at $1,318.40 on the Comex division of the New York Mercantile Exchange, its lowest level since Oct. 4, according to Dow Jones.
But the dip does not faze some gold investors.
Scott Van Steyn, an orthopedic surgeon in Columbus, Ohio, said he will continue to invest in gold. He blames the Federal Reserve's monetary policies for manipulating the money supply but, he said, that has led to an increase in the value of gold.
