"Investors Flock to Old Standby: Gold"

ROBERT SIEGEL, host:

Now, what if stock prices are going down and bond prices are going up - which means yields go down - and dollars in the bank are losing value against other currencies, and real estate is losing value. What do people invest in? Well, there are some things that are going up in value. For example, precious metals, like gold. Ira Epstein is president of Ira Epstein and Company Futures in Chicago. He does twice daily video Web cast. Mr. Epstein, what's the gold story this week?

Mr. IRA EPSTEIN (President, Ira Epstein & Company): Well, the gold story has been pretty consistent. Gold has been a safe haven, as people around the world - not just the United States - have been running to it because of the falling and worsening economic tide that's gripping nearly all the industrialized countries.

SIEGEL: Has trading been frantic today and last week, say?

Mr. EPSTEIN: Actually, it hasn't been frantic. It's been orderly. It became frantic for a short time after Bernanke's speech, of course, last week. And then, after that, things have settled down, and the market's been probing higher in levels. But right now, I think profit-taking is probably more in order than anything.

SIEGEL: But if you buy gold, you own something that doesn't pay a dividend or yield interest. And unlike a barrel of oil, you can't heat your home or run your car with it. What can you do with gold?

Mr. EPSTEIN: You can transport it and store wealth. And that's what it's been all about since biblical times. You can put an ounce of gold in your pocket, today, that's $900, anywhere that you want to go. So, that's what it's been about. Of course, people don't just buy an ounce of gold and carry it in their pocket. But the concept is a haven when things are uncertain. And you are 100 percent correct, it does not pay interest. But what good is interest if you're making 3, 4 percent and the value of your currency is falling 6 percent? You're net behind.

SIEGEL: I'd like you to explain something. You said something in the Web cast that I called up earlier today and saying that obviously, gold has already been rising in value. You said the train has left the station you acknowledged.

Mr. EPSTEIN: I say this all the time. Here's what I say. People think they've always missed an opportunity. The problem is they haven't. That's why there is airports, train stations, and that's why there are schedules. There's always another train coming on going to another destination of the same one. Well, there's always an opportunity in the marketplace, the question is when they get on board for that opportunity.

SIEGEL: Okay. Well, thank you very much for talking with us, Mr. Epstein.

Mr. EPSTEIN: You're more than welcome.

SIEGEL: It's Ira Epstein, who is president of Ira Epstein and Company Futures in Chicago.