symbols of gold at any cost. in 2013 hunting images of the toll illegal mining had taken on the proving amazon went viral the video was taken by the carnegie airborne observatory a high tech plane developed by greg cason are from the carnegie institution's department of global ecology. what is it about these mining activities that are so destructive from a let's say from an environmental perspective 1st coal miners not only remove the forest to go down below the soil surface down into what would be called the mineral soil below the biologically active part of the soil so deep in the soil that there isn't a science to tell us that there's forest could ever recover. the devastation exposed from above was dramatic but it was also only part of the story the aircraft but south fitted with all sorts of cool technology that how did you use some of that technology to 0 in on what was happening in terms of gold mining yeah one of the key technologies on board the plane is a laser imaging system what it does is we fire las

silver followlso, gold. but gold is the most important. mark mobius speaking on buying gold, i am silver. the latest data crossing the wire now shows net long positions on gold, the most bullish we have seen in 14 weeks. ounce, taylor keeps reminding us, the highest level we have seen since 2011, $21 shy of its record high. koshy --s now, a cash a cash dicey -- aakash doshi. thanks for being here. i'm looking at the futures contract out there right now. you go out to december on them. they are already above that record high that we hit. a lot of folks seem to believe somewhat what you believe that gold will reach a higher level than where it is today. goingestion is, what is to drive that increase from $1900 to $2000? aakash: i think driving that increase to $2000 in higher is the investor flows half of the of room to go, it is not just on the gold futures aside, if you look at the etf inflows, they are not only at a record pace but the holdings are making new records every month you are seeing the liquidity in the gold ribbon is market gr

we know that is good for gold. there is really no competition for gold.get inflation, that is also good for gold. the is not up a lot on 10-year basis. favors thelue really rock. jon: we have talked a lot about how their all gold stocks that have these huge runs off the march lows. very similar to the world of technology. what have the charts been telling you about the momentum of the gold sector versus some of those technology names? mike: that is what i am worried about. look at the nasdaq. recently, it was 30% above its main. you see gold, it is getting a little stretched but it is still below its all-time high. there is a lot more room for gold to go higher. stock market going down means more quantitative easing. jon: always good to get your perspective. gold.to watch on when we come back, we have seen u.s. home sales surging to the highest level in 13 years. commercial real estate, meanwhile, telling a little bit of a different story. this is bloomberg. ♪ vonnie: this is bloomberg markets. let's get a quick check on the markets. we are seeing a littl

that matters because gold is denominated in dollars it helps gold that interest rates are low. take a look at the daily chart of gold versus the dollar index. this makes a lot of things clear. measures our currency against -- we had a weird moment earlier this year where they were in lock step, okay. it was kind of crazy through the march lows to may. lock step is not supposed to happen then june came along and things went back to normal. as the dollar, which is the green line, plunged, okay. precious metals were higher. that's supposed to happen. garner has reached the point where so many traders jumped on the negative correlation bandwagon that it pushed both gold and the green back to over extended and therefore precarious blows this is too extended this is too extended if the dollar can keep falling, she thinks gold can keep rising. that's become a mighty big if in this run we'll check out the daily chart of the dollar index. it's trading above 93. and the rsi and the percentage are oscillating. those are key important momentum indicators the dollar is oversold okay you hav

tom, gold, gold, gold. we may get a 1900 handle or close to it. i like the way you readjust your bowtie right before we see you on camera. francine: i haven't -- tom: well, i haven't looked in a mirror in 82 years. on a friday, you adjust your type. i did a lavender thing today. it is a more sensitive look. what an interesting market. it is not a normal july, and simply, it is not a normal friday. gold almost touching 1900, better markets in the last minutes off the better than good pmi data in europe. francine: we had better-than-expected pmi in europe, but also the u.k. it is not moving markets that much, but it is something to keep an eye on. let's get to first word news with karina mitchell. >> china has dropped back, ordering the u.s. to close its consulate in chengdu because of the u.s. decision to close the chinese consulate in houston. china serves as a key u.s. listening post. china says its action is a legitimate one and necessary. president trump has given into worries about the coronavirus. he canceled his florida nominating convention

mark: silver will follow gold.ant. >> mark mobius, cofounder of mobius capital partners. lots more to come. ♪ >> flip card has bought walmart's business in india as it looks to consolidate amid fierce competition from amazon. walmart india operates 28 stores across the country which will now come under flip card -- flipkart wholesalers. amazon has been expanding in india. warren buffett's berkshire hathaway has bought bank of america stock, piling more funds into the lender despite its 31% plunge this year. -- boosts berkshire's stake. it now owns around 11% of the bank. rubber glove maker top glove is benefiting from the coronavirus becoming malaysia' yes second-most elliott. on the back of a dizzying rally. shares have soared 450% to give the country of value of more than $16 billion. maybank has a market cap of $20 -- $20 billion. downside seeing broad kospi. the asx 200 losing ground. we are seeing the kospi led lower by materials and health care, pressuring the stock market there. losing for a third consecutiv

dollar gold dollar gold dollar and at those points where you know they hit its peak and then it crashes because people seem to believe that the fed has been able to maintain this value of the dollar right i guess you know paul fall for by raising interest rates like he did to 20 percent or so around 1980 he really set the stage for this greenspan bernanke the janet yellen jay powell herea of dropping rates from 20 percent down to now it's just about at 0 and talk about it going negative so he did a really good job in 1980 restoring faith in the dollar but he also set the stage for a series of federal reserve chairman after he left to take his good work and to constantly extend and pretend so every crisis in america has been packaged as a bond and sold into the junk bond market with a longer maturity at a slightly lower coupon rate and they've been doing this now for 40 years to the point where america's indebtedness has been. engineer to the point of an extinction event as have many countries as has the globe so the globe right now is so deep and buried into debt that we are now enterin

units per gold. you have the etf versus gld, that's the particulticker that s gold some investors are looking for a cheaper way to invest in units that's why silver has outpaced gold watch silver has poor man's trades, and that's why you're seeing the uptick. >> brian, you mentioned inflation being a driver of a lot of what's going on, the weaker dollar, the run-up in asset prices are we ready to have that conversation yet are we sure we're not going to be talking about the battle to stay out of disinflation for three and five and seven and ten years? >> i don't know. we've been talking about inflation, kelly, for ten years. where has it been? i don't know it hasn't been there as well, so i agree with you, i don't think we're ready to have it yet, but we've never seen this kind of global stimulus. look at the cover of "the economist" this week, free money. don't throw the teeth thing at me, gold has no industrial use, silver does. if we get some kind of rebound in the global economy, you might need t

what is the story behind gold?tarting to feel insecure about my multiple accuracies and my charts. the key thing for gold is it is just getting exciting now. we are really taking into new markets, and we have to use a little bit of caution on a 50 week basis. it is a little bit over-bought. this market is breaking out, it is a new bull market, maybe consolidate. s, does that' change your analysis from one million years zero when you are doing it for alexander hamilton? mike: couldn't afford to see the play, but i loved the book. it is so much easier to get exposure to gold. 20 or 30 basis points, you don't have to go to the equities. yes, it is much more easy to get into gold. we are seeing probably a flood of investors. ferro doesn't know the kruger end if it hit him over the head, but does that mean it is just as easy to get out of gold? mike: it is, but gold has a little more enduring boom market. free money, every central bank in the gold just -- world just printing money. there is no competition for gold right

what does that do to gold prices?resting thing is , to understand what is actually driving inflation. if inflation returns because the current pandemic is overcome and the world returns to an environment where growth comes back to the economy, people start buying things again, and inflation returns -- now, from a safe haven perspective, gold may pull back a little bit in that scenario because maybe the risks have eased off a little bit, but from an inflation point of view, gold is a very important inlation hedge, which is why returning to gold in the face of all the monetary accommodations, because monetary accommodation typically erodes the value of currencies. if the inflation returns, people will continue to see growth. -- ifne: if you look at we see a correction in gold -- and i don't know if we do see it or a few predict we will see it -- what would be the catalyst? mobeen: that is a very important question. i believe the main catalyst for a major correction in gold would be a scenario where the world recovers in

a big point is closer to gold and that 90 percent of all gold is used as a store of value it hardly any of it's used as for utility value at all if that's what peter schiff is referring to in terms of so far its use as you till the value killed you value actually is a drawback for so we're just like companies who make money and make earnings are not richly valued by the stock market the stock market likes to put wild valuations on companies with no warning no profits and we've seen that many many times so what you have an actual number there so some are having some quote utilities actually a drawdown but in terms of the performance going forward i would go with of course paul tudor jones who is you know let's face it i mean peter schiff is an ok guy and he has done has been somewhat successful but paul tudor jones is is $100.00 times bigger magnitude scale of success and he has said he's buying bitcoin over gold because it's the fastest horse in the race where every dollar that gold will go up we're going to see $25.00 to $30.00 in bitcoin appreciate and silver yes sobers always going t

money so he said gold is definitely a fee out money hedge he's buying gold and that money will be a passing fad in the long term history of money well yeah this it always has been a passing fad and there's always a return to gold the thing is that when you have money printers in charge the act of printing all that paper money to anger and dies themselves really fills their head with dreams of it's fear supremacy that's the ultimate form of supremacy is i print therefore i am and if you can pull the levers of political power with your fear of money if you can acquire assets with your fear of money that gives you that god complex that we have so much of a around the world and countries and big corporations and now it's all going to come crashing down silver prices on one day in the past week it went up 13 percent so silver is back it's pass through its long term resistance for the past 6 years 20 dollars and about $0.50 has been a resistance it could not punch above that but it punched through that heading past $23.00 it was like soaring and therefore the bull market is finally back o

so gold is a huge market compared to sell variance figure it's the next step up is the s. and p. $500.00 so you know it's up there with a huge you know mark in terms of trying to push it around it's harder right well so over we'll meet the robber to traders right so gold as a conscious $30000.00 it heads to $3000.00 the robin hood traders and now there are millions of them and not only robert a but other apps that allow you to trade without any commissions at all banks allow you to trade pretty much about any commissions are there now day traders at home because of the covert $1000.00 they're at home in the sports hasn't been interesting and you've got dave portnoy who was a sports guy and now he's a day trader guy so they're all going to come and look back to so over it's got that unit price cheap unit price compared to gold right it's like 202324 dollars 25 dollars versus the. near $2000.00 for gold so mentally these day traders and robin hood traders will say all this is a lot cheaper so they'll pile into it as they did in 2012011 when you know we saw it go to $50.00 an

gold and gold mining seem to be in the d.n.a.of south africa. >> swanepoel: south african gold mining especially has always been at the center of all political and other activities in our country. i mean, our bad apartheid history is intertwined with gold mining. i mean, a lot of the-- a lot of the legislation to dispossess black people of land was in order to create cheap labor for south african gold mines. >> whitaker: you grew up in a small mining town during the era of apartheid. what are your strongest memories? >> swanepoel: well, ultimately, i'm a privileged person that, because i was white and i was male, those were the two requirements at the time to become a mining engineer. >> whitaker: so are you the new face of south african mining? >> kasongo: i will say yes. we are the new generation in the mining. >> whitaker: just a dozen years after apartheid ended, engineer monga kasongo started managing the smelter. he told us he chose to move here from the congo to work in the mines. has that wound in south africa been healed

it does move alongside gold but it does whatever gold does, more so.it can move quickly. i was looking at the data yesterday. to2011, silver went from $26 $50 in the space of three months. it's a metal that can move quickly but it can also come down quickly. you've got to be a fairly fast mover if you want to get in on that rally. us,: thanks for joining eddie joining us with the latest on gold and silver. we have a selloff on the weight in global stocks, asia through to europe, u.s. futures also pointed lower. there is increasing concern about tech, nasdaq futures down 1.3%, low intel numbers getting attention in europe, as well. matt: yeah, nasdaq futures dropping about twice as much as we see s&p futures falling right now. so, amtek is the biggest losing group -- and tech is the biggest losing group in cash trade. we'll talk about it more on radio. ♪ francine: tit for tat. to closels the u.s. anotherulate in location. u.k. chancellors asking for an extra relief fund for scotland, northern ireland, and wales. the nasdaq erases its gains for the week

on your gold.old price will rise as uncertainty is rising. one of the other interesting things about gold, and i have not looked at the numbers recently, the supply coming out , what is it going to be. i assume output should be declining for gold. that puts additional pressure upwards on the price. >> when you look at the u.s.-china spat, does it diminish significantly your appetite for chinese assets? should we assume we will see more fights between china and u.s., china and europe and other countries? our: we factored that into calculations. china is very important. along with brazil, china and india are big for us. we look at china, chinese companies in a separate light. we look at what the global non-us activity is. for example, the way you have seen it, alibaba financial services has now teamed up with south africa to provide financial software and apps. this is the kind of thing that is happening. these chinese companies are moving globally to places where they will not be affected by the sit

another big theme, gold and silver surging. gold today at a record high.e you share your thoughts on gold. highs.all-time that is usually a good thing that reflects positive momentum and means gold has exceeded what was final resistance on its chart. the breakout, assuming it is confirmed with another week or so of trading above this 1920 level, we can arrive at a measured projection using a iart to get to that 2285, so nice move, as you can imagine. near-term, there is short-term exhaustion that supports a pullback or consolidation phase, and that would be healthy for gold, and of course, other related commodities. leadershipexhibited within precious metals. outperformances is something we become accustomed to in coming years. >> that consolidation for mecca cap seeming healthy. thank you so much for joining us. this is bloomberg. ♪ special onfor our the tensions and turmoil in hong kong, a city on edge. ♪ romaine: the u.s. government is a top-tier, aaa credit rating with fitch. fitch putting that rating under review, saying the outlook has gone from stab

i also like golds. you know, gold is one of these stores of value that, you know, i know you guys talked about earlier in the segment today and one of the big rationales for gold is the idea that, you know, historically if you look at mixed income or bonds, it's the place you go when things are crazy. the reason not to own gold is that there was no income today with bond yields being so low and expected to be low for the foreseeable future, gold now is an attractive alternative. >> isn't that what's driving stocks, alan you have negative yields in europe you have no yield basically here in the united states gold doesn't give you any money but if you buy some kind of a blue chip stock, maybe even like a microsoft you actually get a dividend payment each quarter. isn't that what's driving some of this action in stocks, this idea that there is no alternative? >> yeah. the tallest measured in the room for sure the issue is that a lot of what's driving stocks is stimulus microsoft aside, right stimulus is re

begs the question how much of the overall gold market is fake gold especially now when china who is the world's largest gold producer just found that over 20 percent of its annual production was completely fake so i mean i know of peter love of gold and to his credit the traditional thing yes that but that was in the prevent coin days so right now do you really want to put your money into something that is so widely counterfeit these days point is basically digital gold and mathematically impossible to counterfeit is verifiable by anyone and as we pretty much talked about before because it is divisible durable portable and more scarce and gold not to mention more fundamental less lovable to that so between the 2 i prefer digital gold so many say it's possibly hackable. only by use their well it's been it'll be interesting because gold has been a huge commodity metal that precious metal that has been going up recently so definitely came as a surprise but then we've recently talked about news that pay pal may be moving into the crypto space another company is reportedly hiring krypto and

the ratio between silver and gold.di: i have to ask the abled question -- given the unprecedented year that is 2020, we look at gold as a commodity or a currency? what do you advise investors to shoot their perspective into? ed: we have never actually thought about thinking of gold as a commodity. it is not like other commodities. it is not consumable. you never really lose gold in the world. it is more like a currency. it is more like an asset that fluctuates with a lot of other things. this is the kind of moment where gold really works in terms of the yield you can get from it based on all the other things happening in the global economy. you don't have to worry about deterioration, consumption. it is something unlike other commodities, which gives you a sense of where the world is going rather than a snapshot of the world is currently. the momentum and bullishness we are seeing for the outlook of gold unprecedented to you or is it comparable to any other period of financial history in your experience? ed: it is comp

gold, we see that getting to 2000. silver is probably better bargain versus gold at the moment.hether it is mining stocks, whether commodity stocks,etf in the space that is a great hedge. we see a lot of momentum moving into the gold market. charles: real quick, ray, crypto, bitcoin is coming on strong and some of these other names are also coming on strong as well. i don't know if it is because of precious metals or something else? >> we actually think it is the dollar weakness that is driving the crypto. so bitcoin at 10 1/2 thousand and what's happening on etherium, i think those are the ones people are tracking the most. good to check in on to see what the retail investors are doing in terms of the bitcoin side but part of that movement is happening because -- go ahead. charles: no. etherium up 43% today. nasdaq is up. s&p is higher. the dow on the cusp of going positive for the year. courtney, ask your thoughts on the next 5% move in this market. do we see all the major indices break out big time and you have got to chase it or do we finally pull back? >> i have to say ther

gold surging. francine: gold is pretty significant. just to remind everyone, volume in europe well below average with a technical glitch affecting some trading in the region. european stocks overall are pretty muted. it is the start to the third quarter, trading, investors mixed. with the fresh warnings about the spread of coronavirus. let's start with the latest from hong kong. police have made their first arrest under the new security law, 24 hours after chinese lawmakers handed it down. hong kong is working 23 years today since the british handover, usually marked by mass protests against beijing. joining us now, where some of underway -- are there was a lot of speculation about the interpretation of the law. with the first two arrests, are we closer to understanding how police on the ground will take this new law? passed,e bill that was six chapters and 66 articles for offenses were outlined, terrorism and collusion with foreign forces -- the penalty for the most severe cases his life imprisonment. there was a concern about the dea

gold, folks, have you seen gold? one of the best performing assets of the year.aum. the question is, bullion, coin, gold stocks? you will hear later in the hour. also -- we'll be right back it's pretty inspiring the way families redefined the word 'school' this year. it's why, at xfinity, we're committed to helping kids keep learning through the summer. and help college students studying at home stay connected through our university program. we're providing affordable internet access to low income families through our internet essentials program. and this summer, xfinity is creating a virtual summer camp for kids at home- all on xfinity x1. we're committed to helping all families stay connected. learn more at xfinity.com/education. ♪. charles: a new civil rights audit commissioned and released by facebook itself, showing the tech giant failed to address issues of bigotry on its platform with mark zuckerberg is facing with a fast growing advertiser boycott. the meeting with the leaders yesterday, let's say it didn't go so well. cheryl casone has more. reporter: ce

tom: billing for gold. futures are trading at a record high as concerns of the global economy boost demand. let's check in on the markets. it is risk-on in mainland chinese with japan opening after a holiday. the regional benchmark is up .6%. in terms of japan, down about .5%, over 110 points lower after a two day holiday. in terms of what is happening in shanghai, not much gains as what we are seeing in china, which is up more strongly. nonetheless, shanghai up .3%. futures in the u.s. up .4%. looking ahead to meals conversations between white house, republicans and democrats. in the fed meeting as well. will we get anything from jay powell as the coronavirus remains a major issue in the u.s.? moving on to some currencies, dollar weakness is still a trend at play. we are seeing that play out for the offshore cnh strengthening at around seven. in terms of the yen, 106 is the crucial level for that. higher option volatility. in terms of hong kong, we are focused on the newtek tech index as part of the conver

tom, gold, gold, gold. we may get a 1900 handle or close to it.ou readjust your bowtie right before we see you on camera. francine: i haven't -- tom: well, i haven't looked in a mirror in 82 years. on a friday, you adjust

of china's annual gold production and 4.2 percent of the state gold reserves so that's quite a significant amount and that gold was used to collateralize about $2800000000.00 worth of loans over the past 5. so the gold ended up being nothing but guilty copper so now the lenders are holding the bag for the remaining $2300000000.00 of loans outstanding against these fake bars and the thing is the scene in the 1st time that happened we spoke about this last year when state gold bars were found in j.p. morgan's vault as a new high end counterfeit merged into the gold circulation so right now that really begs the question how much of the overall gold market is gold especially now when china who is the world's largest gold producer just found out over 20 percent of its annual production was completely fake so i mean i know what peter loves is gold to his credit the traditional safety asset but that was in the previous point days so right now do you really want to put your money into something that is so widely counterfeited these days point is basically digital gold and mathematically impossible

lisa: you have gold bars in your bedroom. i have oil, you have gold.we have today is an exceptionally busy goal -- an exceptionally busy day. we have the fed meeting at 2:00. incredibly good guests involved. before that, a double barrel 12:00. we will have the tech hearings, they will be extraordinary. the introductions will be there. while they are introducing the tech hearings, lawrence cop will join us. he has with general electric and this is an important conversation, much more than ge culp onwrence industrial america. dow futures up 38. gold $1975 an ounce. this is bloomberg. good morning. ♪ ♪ jonathan: from new york city for our viewers worldwide, good morning, good morning. the countdown to the open starts right now with 30 minutes until the opening bell. equity futures positive .33% on the s&p 500. what a day we have coming up on capitol hill with tech hearings and the fiscal debate continuing. jay powell facing off on a news conference and we are looking for him to build on the words of governor brainard, the ship from stabilization to accomm

gold gold keeps running higher. more on gold but it is up another $3 and change right now. as big as amazon and online retail is. did you know that a tiny percentage of retail sales online spending is one-eighth of what we are spending in retail we note amazons, it is their world. we are just living in it names like etsy and others may continue to run? >> it feels like we buy everything on line and we are so comfortable. groceries. automobiles happen on line these are huge categories that haven't changed yet. >> beyond a more broad electronics and clothing store people are familiar with buying on line. >> the big debate we don't know. we know americans love to shop whether online or in person. whether this shift will continue when things are completely reopen and the pandemic is gone or is this a permanent shift because we realize we don't need to go to the store we realize we are desperate for something to do. what is your take on the longer term play here >> a lot of these habits have changed permanently. going back to groceries and ordering online. a lot of people want t

just gold thatot is on the move. silver is actually outperforming gold as we speak.ou are forecasting to move even higher as well? simon: the gold and silver ratio is something we watch very closely. that is one of the reasons why they have big silver exposure as well in their pro-folio. t -- their portfolio. i would like that mix because some investors will look to the fact that perhaps gold, the single aspect is perhaps moving on a little bit of urgency. you look for other safe haven metals -- yousef: sure. we have to leave it there. simon will be continuing the conversation with us on a.m.berg radio at 09:00 u.k. time. this is bloomberg. ♪ ♪ annmarie: welcome back to the european open, we are 30 minutes into the stoxx 600 is down nearly .5% this morning. european equity futures are pointing to a higher start in but that didn't materialize at the open and only three sectors are in the green this morning, but barely and the spectrum that is a laggard is travel and leisure, down more than 3% as we heard from ryanair. they are worried about a second virus resurgence,

gold catching a bid.nd up having the weaker dollar, more stimulus, negative real yields, that is the perfect storm for the gold market. european stocks are not moving as watch -- as much as they work. they were rising. there is a term called better than feared. they were little bit better than feared. a lot of them are trading sideways. a bit more optimism in the auto sector but they did fall significantly. up a touch it amongst the biggest losers is travel and leisure. daimler rising 6%. 4% higher but it went up as much a 7%. posted what goldman sachs call strong cost savings. up 8%. amongst the biggest decliners, roche, the outlook disappointed investors somewhat. alix: indeed. unilever, hand sanitizer is all the rage. another issue is the u.s. relationship with china. president trump's order to close the chinese consulate in houston made it clear the hawks are now in charge. china has warned the u.s. to think about the relationship and where it is headed. bloomberg spoke to max baucus who said that is

gold to silver ratio, copper to gold ratio.these is showing you perhaps the best opportunity for gold? peter: i think it comes back to silver. because the move has been so pronounced and relentless, and the market is huge. once that momentum starts, with it moving into silver, silver could see $30 fairly quickly. on percentage terms, i still think that is the one that has the most promise. caroline: great to have you with us. interesting what has been happening in terms of delta, some breaking news saying they will be capping the number of seats. notably, they are asking customers to wear a mask through the end of 2020. this is something that we understand is likely, but seeing those dates in print does kind of continue to amaze. romaine: it gives you a sense that we are in for the long haul. we heard from another airline a little bit earlier, and that was southwest. it is planning to adjust its flight schedule to match the dip in demand. coronavirus cases rising. the chairman and ceo saying they expect air travel to remain low

francine: what is moving gold? why are people buying gold now? i think it's finally catching up. a lot of investors are figuring it out that gold has been outperforming the stock market for almost a five-year basis and we see what has happened from the central bank from the bottom line and when you have unprecedented quantitative easing on a global stage that's really a bid for gold but yet the equity market depends on earnings and equity is up a lot over 10-year basis and gold is not much at all on a 10-year basis so that reversion process with gold is just catching up. francine: mike, thanks so much, mike mclone with the latest on gold. coming up, the end of the beginning is how k.k.r. calls its latest reports and look how the firm is deploying capital in this new post covid world. the firm's head of global macroand asset allocation. this is bloomberg. ♪ ♪ >> welcome back to bloomberg markets, everyone, i'm eric in new york city. rising infections are sputtering recovery and now flaring tensions with china that all demand a re-evaluation of the

tom: i don't buy gold -- james: i don't buy gold or those currencies. like the values based on calculating the future value of the cash flows i will receive as an investor. very much as if i was with a private company, with a little block of gold sitting on my desk, i can put a price on it long-term. i would say that the gold price will come down as real confidence in the global economy returns and bond yields begin to rise once again. francine: if the economy is going to be much more sketchy than we thought it would because of a resurgence in cases in covid-19, what do you buy then? james: i certainly think there is still room to buy all that he and secular growth opportunities in equity space. i worry about the s&p 500 index because 2010 times forward earnings, there is no room for error. however, if one is able to buy companies at reasonable valuations, so the second tier tell -- second-tier tech names, there is room. simply living off the free cash flow yields and therefore by extension the return returned from the companies invested in, i think tha

marcus garvey joins us now on gold. it is real simple.rticle i see talks about a real yield compression, inflation-adjusted yields are low, etc. is it safe to say that chairman powell and other central bankers have initiated a surge in gold? marcus: i think that's a reasonably fair summary, yes. our framework of thinking about a gold price as a defensive portunity's the oddp cost of holding. we have seen it compression in that opportunity cost or in many cases, taking that opportunity cost negative. that is why you see both institutional and retail investors, and central banks, increasing gold allocations in their holdings. tom: how have supply and demand dynamics adjusted to this surge? is there something notable you see in the demand of gold? is julie resales lower -- jewelry sales lower? marcus: we have seen quite a mixed bag, actually. holdings have moved above 100 million ounces. there has been strong western developed markets demand for things like coins and bullion. is a function of demand destruction. we are not at all-time highs

we might expect a vil more volatility today >>> gold has been a stronger trade.his morning at 1,770. a little selling in silver, palladium and aluminum in the meantime, endeavor mining has closes the acquisition of semafo around 1 million ounces produced a year the ceo of endeavor mining corporation. clearly a lot of work has gone into creating this mining giant. tell us about the size of the new entity and what you you are hoping to achieve. >> thank you it is about putting together two strong producers in west africa. endeavor mining is now the largest gold producer in africa and we believe there is more to come in this region, which is probably one of the most interesting in terms of gold discovery. this will bring the combined group to around million ounce production market cap will be around 4 billion canadian it is attractive as we continue to grow. >> coming into the crisis, there was still appetite for gold. a lot of defenses were inclined to more as et. looking at that gold price around 1,700 what does that trade mean for your organization? >> we are com

well 1st of all the idea that gold doesn't have any practical uses is just not true i mean gold does have industrial uses is just that the monetary use of gold often out shines that but if gold didn't have real use properties then it wouldn't be have any value in it it couldn't be a store of value but yes i mean what's truly driving the price of gold now is a awakening realization that the u.s. dollar is headed much lower we're basically threatening to print it into oblivion and other central banks are you know following in our footsteps i don't think they're being as reckless as the fed but still people around the world have to look for alternative stores of value they can't just hold currency because they're going to be taxed to death by inflation and so the demand for gold is only going to get higher from here so the price is going much higher i think all metals are going to be driven higher by inflation so i'm bullish on copper to. too but for different reasons than bullish on gold i mean sure gold is used in industry but i think the demand for it as a monetary alternative from b

gold and silver. gold and silver. that was a month ago. >>> plus, bill gates on getting a coronavirus vaccine across the finish line. check out shares of mcdonald the dow component reporting mixed sector mixed results comp fell 24%. a little worse than analysts had expected u.s. same-store sales fell less than predicted they saw comp sales improve sequentially as the quarter went on u' w tuned yoreatching "squawk box" on cnbc stock slices. for as little as $5, now anyone can own companies in the s&p 500, even if their shares cost more. at $5 a slice, you could own ten companies for $50 instead of paying thousands. all commission free online. schwab stock slices: an easy way to start investing or to give the gift of stock ownership. schwab. own your tomorrow. schwab. right now, switch to t-mobile and get four lines of unlimited for just $25 bucks a line. with access to america's largest 5g included. that's right. unlimited and nationwide 5g for the whole family for just $25 bucks a line. only at t-mobi

gold is of a bid to the ancient bid to gold versus the new financial is asian of the bid to gold -- the new financialization to the bid to gold? michael: i would refer you to the bond market, where the etf phenomenon started to build. they were not a factor 10 years ago, and now have a massive amount of bond holdings. i don't think that negates the genuine nature of the bond market rally of that time, so yes, i think etf ownership is very important for precious metals. it has allowed a different kind of buyer to be long metals. i think a lot of institutions would not bought -- would not want to belong physical gold. but that is just part of the way financial markets work. that is how gold is going to be owned going forward. by itself doesn't mean that the march 2 almost $2000 -- the $2000 >>almost validity. jonathan: why is it different from 2011? michael: you didn't have a massive explosion of monetary policy locally. you were unwinding some of the qe in the united states. it really relied on the idea edat the euro crisis mark the end of the fiat currency. the argument wasn't that stro