Gold, silver in short supply
By Doug Page
If you are
thinking of diversifying your portfolio to
include gold and silver, you may have to stand
Richard Hana of Belmont Coin said his shop ran
out of pure gold and silver coins two weeks ago.
"We people come looking for gold or silver, we
take their name and when something comes in, we
call them," Hana said Wednesday, Oct. 8. "In a
sense, it is already sold before it comes in the
Hana said business is up 300 percent to 400
percent, particularly in the past weeks.
"People are scrambling to buy gold and silver,"
said Ed Fritz of Centerville Coin & Jewelry
"There is huge shortage worldwide. People are
pulling money out of economy, which has created
a huge demand," said Fritz, who has been in the
business for 40 years.
Gold was selling around $910 a troy ounce by
midday and silver at $11.70.
There was plenty of gold in March when the metal
was selling for over $1,000 an ounce. Then
customers were coming in to sell. Now they want
to buy, but few wish to sell.
"Everybody wants a different hedge with all the
problems going on," said John Eckman of Dixie
Coins & Stamp. "They want to buy something that
will be worth something in the future. But there
are no guarantees."
Fritz called gold "liquid cash". Following last
month's windstorm, a customer came in to sell a
1-ounce gold coin so he could fix his roof.
"People see it as something tangible that won't
disappear on you like the numbers on Wall
Street," Hana said.
Eckman has a customer who took a General Motors
buyout and is now investing in precious metals.
Another, an older woman, bought 20 ounces of
gold last week.
"When she has some extra money, she buys,"
"There is plenty of gold out there, but nobody
wants to sell right now," he said.