By Michelle Smith-Exclusive to Gold Investing News A result of this year's gold frenzy was that it pushed up storage costs. Now that safe haven gold buying has calmed, it is likely that some investors may start raising their eyebrows at the costs of protecting their assets. Before this year, clients may have been paying annual rates of .03 to .15 percent of the value of their gold to store it. Those who tucked their metal away in 2011 may be paying a full 1 percent. In many cases, investors may not even realize how substantially prices have spiked because they are new to the market. Ten years ago, people bought gold and kept it in their homes because it wasn't worth much. Then, the prices starting skyrocketing and fear of loss or security risks sent them out looking for professional safe keeping, said Mike Clark, President and General Manager of Diamond State Depository. When asked whether storage facilities are merely cashing in on the trend or if higher prices were justified, Clark revealed that it was likely a bit of both. “There are only so many depositories,” he said. “If there is a big demand for a small product, prices go up.” Those may be the fundamentals of business, but the surge in gold investing did produce real effects, such as space constraints. In addition to new investors, there are longtime individual and institutional clients who expanded their portfolios who needed storage facilities for their metals. Furthermore, massive storage were also required for physically backed exchange traded products (ETPs). A benefit of investing in an ETP is that individuals do not have to worry about handling the metal they own, but it must still be housed on their behalf.