Despite a poor January for gold and silver, investors are heavily purchasing the precious metals, Bloomberg reports.
Investors have garnered more gold than all but four of the world's central banks. They have acquired more silver than the amount of the precious metal that that can be mined in the U.S. during a period of 12 years.
Investors have $102 billion devoted to the belief that gold's value will rise.
"Gold is going quiet," Pete Sorrentino, who helps manage $13.8 billion at Huntington Asset Advisors in Cincinnati, Ohio. "It's good and healthy and characteristic of gold's stair-step rally. We'll see a little more downward pressure and then begin to trade sideways for an indeterminate time. "
One investor whose assets are 20 percent gold said he was entertained by people dissuaded by gold because of the poor performance in the past month.
"I had to chuckle when I saw reports that it was over for gold," Michael Cuggino, who helps manage $10 billion at Permanent Portfolio Funds in San Francisco, told the news service. "Some investors have taken money off the table after a significant run-up in 2010. If you look at the macro environment, the instability around the world, the worldwide currency devaluation, these factors all bode well."
Shortly after 2:30 p.m. on Monday, gold futures were up 0.16 percent, a $2.10 increase to $1,351.10. Silver also was up 0.98 percent, a 0.286 increase to $29.345 per troy ounce.
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