New Gold Rush

" And I'm closing in on 1100 dollars an ounce after already blowing -- record highs why the search. Hit the surge in gold -- explains Jonathan -- he's the portfolio manager of capitalist pig asset management I have never told you this I love the the name of your company Jonathan welcome to the land back program thank you judge -- was -- time very much you're welcome there was a time Jonathan when the dollar and gold. We're tied together where where dollars had to be backed up Michael what why was that what was the reason for that."

" Because judge you know dollars a piece of paper and gold as a store of value and of course -- anywhere these days about my yeah. My goal this is the hottest investment clearly in the world right now. A gold is a store of value it has been literally since that Christ walked eager. And as more and more people are dumping the dollar these days they're turning to gold as a store of wealth which is exactly pushing as he pointed out to new all time highs today."

" All right and so politicians. Pushed for the separation. Of a dollar from gold so that they could print dollars without having gold to back it up. So that they could be under someone's gonna have all the cash to spend that they wanted without having now have a reserve of gold so that the dollar was worth something."

" It's true and any hope for awhile -- in this country judging it it seemed to work -- we've really seen that certain that change. And that changes accelerated in fact keel over 70% of the world centric that Central Bank holdings used to be held in US dollars now that's -- down to about 64%. In the latest bit of news that is prompted gold that has lurched higher prices today. Is -- is that India is actually diversifying. Out of the dollar and into gold -- to -- more and more bad move now only by central banks -- individuals. Literally getting out of the dollar and getting into gold as a as a store value why is the price of gold going through the roof. Well it's you know there's there's a number of factors -- one of which we talked about is clearly that the decline in the value of the dollar and you know. Goal has always been -- of judges hedge against the value of dollar to lower the value of the dollar goes the higher gold prices those who would certainly think that is well. I have to believe that the notion of private wealth -- a mutual fund you have the bank account of the savings account. All that is very visible to the US government and I think at a time which is you were talking about with your earlier -- government is playing a bigger and bigger role in almost every aspect of her life. The notion of having a couple of -- and the couple of bars in a safety deposit box somewhere is very attractive to many many investors are."

" When the dollar is decouple from gold. When the value of the dollar goes down when it can buy less and less. And on the value of an ounce of gold goes up is that an indication. Of something likely to come Jonathan."

" It is section at its inflation you know I mean we've been people are looking at the stock portfolios. That have basically been flat now for ten years Leno at the value of your dollars -- the dollars in your pocket. In your bank accounts have declined by about 25%. Over that period of time. And you don't eat eat you're from people not only just economist that you literally in here from clients of -- people you like interact with on the street. They realize that their dollars are purchasing less and less and -- you know did you have brought in I. A dollar -- wanna play well but it's a doubt. I wanna play -- game Jonathan Hoenig and one -- I want you call this Zimbabwean. Trillion dollar bill yes and on the other hand I want to hold old house really old not truly a judge hundred trillion. 800 trillion dollar bill I could mean this is not worth a one did yeah okay now -- I among our number 100. Which combines power and hundreds yeah. Bill all right. That is it is worthless mrs. 11000 dollars. And this is literally worthless and I think it reinforced that point judge that. You know the -- credit which we -- is so valuable to the economy so -- the economy the word credit literally is from the Latin word to believe where people believe less and less in the value of our credit in the value of our currency. That's why they're turning to gold it's a scary picture of where we thank dissipating a four's Jonathan Hoenig will be right back. --"