Gold rush in Delaware depository

WILMINGTON - December 10, 2009

The First State Depository in Wilmington is experience a gold rush of sorts because investors know no matter what the rocky stock market does, the gold will never ever be worthless.

Another reason being the HSBC Bank in New York suddenly announced it will no longer store precious metals after the end of the year.

"They've got less than 30 days to get it out. Some people don't know where to go. They know they have deposit boxes and that's it. 'What's my other option?'" Eric Collins of the First State Depository said.

Collins says this small company hopes up to 10,000 of HSBC's booted customers consider his depository an option, but current clients will remain just as precious like the man who deposited bags of presidential coins and then there was a Massachusetts man who buried a safe in his yard.

"Everything in there had mold and mildew all over it. The certified coins were just disgusting," Collins said.

Collins says the cash was reduced to mush which is reason enough for investors to consider transferring cash into precious metals.

Customers may need to wear a coat in the temperature controlled vault at the depository, but that's to protect their investment. As for gold, there used to be a time when people would stick it in safe deposit boxes or even bury it in their yards, but of course, that's no longer a good idea.

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