Reuters reported that growing numbers of investors are turning to the minor metals market as a safe haven for their pension funds as gold and silver prices soar to record highs.

Mr Gunther Maassen of German trading firm Haines & Maassen said that we've always had a certain amount of interest from the rich in the Anglo-American sector. About four years ago it started to pick up within people with average wealth.

He said that this year, gold and silver prices have gone up by about 21% and 8% respectively as uncertainty over riskier assets has grown amid the euro zone debt crisis. Investors are moving their profits from gold and silver into minor metals in order to diversify their portfolios.

Traders operating in this sector said that the trend will continue and grow as investors look for ways to keep their money safely outside of the banking system and as high demand from China makes metals an attractive prospect. This trend appears to be having little effect so far on the minor metals market.

Frankfurt based metals trader Tradium has set EUR 50,000 minimum for private investors to buy physical metal. Demand for investment has been so strong that it has set up a subsidiary storage business named Metlock which is located in the Rhine Main area. But not all investors are choosing to store their product with Tradium; a few are taking delivery of ingots to their own homes and keeping their investment as close as possible.

Mr Matthias Rüth of Tradium said that this is only 1% or 2% of the customers. Most choose to keep it in our warehouse or in Metlock, our storage facility for private investors. Many do choose to take maybe one ingot home for their desk, so they can see some sign of their investment.

(Sourced from Reuters)