CNN-Money: a quarter of buyers of gold - just crazy people

Many people who
buy small pieces of physical
gold, do not want to make him a bracelet
or ring. They simply buy gold
because they think: a disaster is inevitable.

"These investors are convinced -
gold price will rise to $ 10,000 per ounce (then
as this week it traded around
$ 1224), when the US government is going to explode".
- said Peter Hug, retailer
metals Kitco. Hag calls these people
"loonies" and said that such
quite a large number in the US -
at least 25%.

It's not a secret to anybody,
that gold has long been considered
as a means of insurance against natural
disasters. The explanation given is simple - even
if the financial or political system
collapses, gold will continue to be something
cost. Yellow metal still widely
It is considered as a tool
hedge against inflation and the collapse of
dollar. These two threats are greatly concerned
the market is now, given the huge number of
new money printed by the Federal
Reserve.

But soon possible end
World trade in gold - so said
Inside ETF conference in January, the representatives of
the largest online store of precious
of metals in North America. these so
called "zolotosumasshedshie"
They represent the majority of customers
Kitco for business, they buy small
the volume of physical gold - between 1 and 32
oz. "these investors
buy the metal, and it just disappears.
In fact, it is hiding under the mattress. They
They want to use it, when it is
end of the world?"- said Haq for CNNMoney.

irrational fears
or tangible guarantees?

Peter Schiff invests in gold for many
years, said that this characteristic
gold is unfair buyers.
"Fears of economic collapse
in the United States are non-rational. I think that it is
even more irrational than ever
people are satisfied with the fact that something can
go wrong"- says Schiff. Difficult
to understand the arguments of those who put gold
before the collapse of Lehman Brothers in September 2008,
- prices jumped to $ 800 per ounce at the end of
In 2007 to more than $ 1,800 in 2011, and
central banks rushed to stabilize
financial system and the failure of
Great Recession.

Nevertheless, inflation
It remains. Although, perhaps, deflation is now
more concerned about the people in many parts of
world. And it partly explains why
gold by the end of the week dropped to $ 1226.

Schiff acknowledged that
Some people are so paranoid,
they do not see and do not accept anything,
except for physical gold. "It too
scared and maybe they are obsessed with gold. But
surely they are less rational than men
who do not own gold?"
- he asks. Schiff added that his
brokerage firm, which sells
physical gold for supplies,
It recommends that people have from 5% to 15% gold
in its investment portfolio.