but the lure of gold is irresistible. he found 5 kilograms of gold in two months. he invested the proceeds into this plant. each takes about 200 sacks of gold mercury. the sludge is built fort days to separate out the gold. he charges 400 euros for the service. >> i decided to look to the future. if i did carried on digging, i could have been robbed or not found any more gold. anything can happen. it makes sense to invest profits wisely. >> his clients come in person to pick up their gold and to find out how much it ways. this man's yield is just a few grams. the quality of his gold does not forget it. it is only worth about 800 euros. he has not hit the jackpot this time. the gold merchants usually fare better. at the same time, the soaring price of gold poses a problem for them. at least, that is what he says. if he sells today, and the price is even higher tomorrow, he has made a loss. the diggers have grown wise to the tricks of the trade. >> they also note -- when it rises, they send each other text messages. we cannot place any tricks on them. even though wit

gold corp., ticker symbol gg, ran gold, ticker gold, and eagle mines aem. why do you like these stocks and why should investors take a fresh look? >> one of the things that we look for in a gold company is growth. growing production. gold production globally has stagnated over the last decade. so companies that didn't provide growth generally see much better share price performance. and all three of those companies that you mentioned have a strong element of growth in their production profile that we like. and they also have management that we think can deliver that growth on time and on budget. >> susie: all right, you've given us a lot to think about. thank you so much, joe, for coming on the program. one last thing before we go, i need disclosures, do you own any of those stocks we just talked about? >> i own them through the international investors gold fund, which i manage. >> susie: all right, thank you again for coming on the program. >> thank you. >> susie: we've been speaking with joe foster of the van eck investors gold fund. >> tom: stock investo

significantly is gold mine c.e.o. scott carter thanks so much for being here. now they're having me laurin absolutely so next then he said this is decision to unpeg the dollar from gold once and for all the not allow people to convert their dollars for gold but this was about making the dollar the pillar of financial stability around the world was it or did it set the stage is for boom and bust cycles that have alternately allowed you to make a lot of money off of gold well i think you had it at the top of the hour we haven't been very successful at making gold or you scuse me the dollar stable right now the dollar is lost as you said ninety percent of its value so if our objective was to make the dollar stable for the world we did not achieve that and as a result what you're seeing because of the boom bust cycle inflation the devaluing the currency you're seeing a move back to the gold standard even though it's not official you see gold increasing in value you see individuals sovereign nations and central banks purch

standard rather than going back to a gold standard it doesn't mean that you're carrying around gold coins to pay for things that when i was a kid i could go into a bank with a silver certificate of gold one dollar bill and get a dollar a silver dollar from there now i still have those silver dollars you know people didn't use them in currency but it kept the value of the currency steady my father could do that with a gold coin a twenty dollar gold card when he was young then it we're simply saying by breaking the dollar convertible into gold or making each currency convertible in the gold it will level the prep playing for the field and allow for economic growth both in america and all around the world but what has to happen first before you see that type of economic growth because a lot of people would say that of course our entire banking system would fall apart because it's not based on sound money because there's still so many derivatives floating around out there that we would see a new sort of crash because it's just not sound and you would find out that all of this is based o

you know if you look at gold gold is like a thermometer on the economy it's like a doctor takes your temperature and you got one hundred five you can't you can't just send you on your way i mean obviously there's some wrong with you where you would have one hundred five temperature the gold going at eight hundred dollars an ounce going up every day is saying that the economy is. sick is really really sick yet our leaders are ignoring gold and just keep on doing the same thing as if gold is telling them nothing and i want to ask what you think if you think u.s. bonds are not a safe haven and they're telling investors the wrong things right now raw do you explain then that yields on ten year treasuries have collapsed to seventy year low in a low key place then they've collapsed because people are buying them because they think they're safe haven but they're wrong and of course central banks are buying them but how does your statement that ten years from as root is yielding two percent the government's own inflation numbers we got c.p.i. this week they show year over year prices increas

so platinum will catch up to gold because it's much rarer in the earth than gold is but gold is being driven by a whole different. factors a whole different range of factors and platinum gold is a monetary platinum is an industrial asset that has a scarcity factor to it it's not as the factors that are affecting the price of gold and you've mentioned these the federal reserve decision they're expected to announce another round of corners of easy so what do you expect the gold rally to continue. because you know and i and i want to point out that i'm not saying that lightly and i know you know the history is full of people who said the rally will keep on going in the next day you know a collapse of the fundamental situation as we talked about earlier is that gold is a traditional safe haven it's a store of wealth the alternative to gold currently doesn't really exist you have these absurd situations where when the u.s. government owns the faults on its treasuries people ran out and started buying u.s. treasuries now when you take a step back and say that's crazy people think the banks

their gold back other nations demanding their sovereign gold back there are thousands of tons held by germany in at the new york fed all countries around the world store in the u.s. will the u.s. give that back that's the big question what do you think well i think no i think jim rickards is correct that i would i would agree with both you engine records that these countries and he's made a big story out of this he believes that america should commandeer the world's gold which would give them something like fourteen thousand tons in toto and make them on the glide path toward having a post keynesian post currency economy based on having the most gold but you're right this is a huge set up for a global conflict. so hugo chavez says this max quote we've held ninety nine tons of gold at the bank of england since one thousand nine hundred eighty i agree with bringing that home it's a healthy decision max the only way hugo chavez is getting that back as he comes back with an alien invasion force hugo chavez well he's good friends with of course all over stone and sean penn and noam chomsky

morgan by summer campaign could be applied to gold is demanding physical delivery of his gold because you know that j.p. morgan and these other banks don't actually have the physical gold they have to go into the market to buy that gold but they're bankrupt to begin with that means they have to incur more debt which means that they're going he's trying to collapse j.p. morgan just like we're trying to collapse j.p. morgan so here goes chavez welcome to the gold liberation army yeah but the point is whether or not he'll ever get this gold back because he's put in a request but is this going to trigger other people demanding their gold back other nations demanding their sovereign gold back there are thousands of tons held by germany in at the new york fed all countries around the world store in the u.s. will the u.s. give that back that's the big question what do you think well i think no i think jim rickards is correct yeah i would i would agree with both you and jim rickards that these countries and he's made a big story out of this he believes that america should commandeer the world

the money but the smart money went to gold gold. because of inflation if i could i think we're having some some audio problems and i really want to talk to you about gold because gold is reaching record highs that it keeps breaking and it's something you really got right so i really want to get into that with you but first i want to show how precious metals are becoming for areas of this country that are in despair in detroit which we've been bringing in new stories on per year showing you how much that city has decayed precious metals or just metals are literally their lifeline watch this. this was once a city that symbolized america's innovation and manufacturing might. but today detroit is the third most violent city in the u.s. with unemployment estimated at up to fifty percent according to officials but once motor city now has more people living in poverty than cars on the streets home foreclosures continue flight to the suburbs which takes the tax base away from the city and there's more and more of that the decline in the sch

at the least it could be a great movie but max alvarez is not the only one seeking gold gold equalstreasuries the evidence a stunningly high correlation of gold to twenty year treasuries from july twenty first through august sixteenth is point eight nine over that period gold is up twelve point three percent and treasuries are up eleven point eight percent i will result the conundrum that people are talking about right now on this show people say that bonds and gold cannot both be hitting new all time highs simultaneously because that would mean that inflation and deflation are happening simultaneously let me break it down for you a bustling the bond market is being bought up by computers. the gold market is being bought up by people who are fearful but the bond market is being bought up by computers just and i'm saying one is real people and the governments are buying gold the other one is think a bunch of computers are buying treasuries to make it look like the u.s. economy is not as catastrophic as it really is and that can only last so long well the reason why people are going t

hopefully at some point we will go back on a gold standard but the price of gold will have to be much much higher for that to happen talk about what's happening over there bank of mellon they're charging fees on deposits. over fifty million dollar deposits can you talk about what this charging of a fee on a deposit means in a negative interest rate will we see more of it other words banks charging people to death on their cash and i think i feed this is a byproduct of too big to fail because people that have a lot of money want to put it in the shoe gently because they feel that they're too big to fail and so they're but their deposits are safe but the reality is that of these deposits are safe because they're all bit outdated u.s. dollars so what people need to do is convert their their dollars into other currencies work or gold of a look at the swiss franc today this was frank is up almost three fold since you needed dollar thirty two to buy a swiss franc in fact with the euro dollar forty wanted to have a swiss franc is rapidly approaching parity with the euro and it just took pari

gold nuggets. do you have any gold teeth? >> jeff ranieri, ready to go to washington? >> yeah, that would be very nice to stumble upon that. also, a golden sunset, across oakland, looking right towards san francisco and the north bay hills. i'm going to step off for this one. you can see from 7:55 to 8:10, the sun was above the fog and the fog started to break a little bit as the sun dropped right back down behind the north bay hills. just spectacular. all right, expecting to see possibly some sunsets like that throughout tomorrow and more fog coming back into place and also some mild weather throughout the bay area. today, some of the hottest weather down here. liverlore close to 90. and cooler than average here by about 10 degrees in santa rosa with just 79d for your daytime high. right now it's dropping off to 50 degrees in nevado. potentially some mid to upper 50s. tonight and in the morning, fog at the coast and breezy in the morning. winds southwest 15 to 25 miles per hour tomorrow. so it a es going to be windy across the hills. high pressure is well off to the s

standard obviously if we go to the gold standard today the gold price will be lower that if we go to it two years from now when it's going to have to be that much higher so a lot of it depends on where we get religion and of course we have it all depends on how much gold we actually have you know relative to all of our notes that are in circulation because it's a relationship between the supply of dollars and the supply of gold that which jet that would set the back and what we're able to give for each of our ious but once we do that then the spending stops then the deficit stop we can't do it anymore if we actually go on a gold standard if it's real then we have to abide by it and so i don't think we're going to go to it again until we have a real crisis as long as the world is buying our bonds we're going to keep selling them is one of the world is gobbling up our paper we're going to keep pretty it is wise we can live beyond our means we'll do it a lot as long as politicians get elected by plunging us deeper into debt they will do it it's not until they can't it's not until there

back on the gold standard. yes that's what we should do but there's no chance that we're going to do that certainly not under obama you know that was the last time the u.s. government actually did default we defaulted on our promise to pay goal and basically rendered a dollar a few dot with no real value but i think that the loss that you're going to see in the dollar in a decade ahead is going to be far greater than the last and in one nine hundred seventy s. because the dollar maintained its reserve currency status despite the fact that we defaulted on that promise the dollar now is going to lose that status right now the only thing that's standing between the dollar and complete collapse is to foolish actions of the bank of china the bank of japan the world is propping up the dollar because they believe foolishly that it's in their political self-interest but as i said when they figure out it's no longer in their interest they will pull the plug and the dollar is going to collapse much worse than it did in o

for gold quite literally.raj mathai goes gold digging, which is quickly becoming a popular activity. >> reporter: this is where it all began, a saw mill west of sacramento in the tiny town of kaloma. in 1848 james marshall discovered the gold flake that set off a golden stampede. but the gold is not just left for the history books. steve tyler and rick eddie are professional gold diggers. >> the economy in 1979 hit the skids, and there was no construction work, so i started to look at gold. >> reporter: for three decades tyler has plucked 70% of his income from the streams and rivers of the gold country. >> looking for a surprise this time, and i have a good gravel. fortunately, i'm a cynical person, so i don't get gold fever. you know, i don't -- the trick is not to waste your time thinking that you are going to get rich, because you are not. >> eureka! he is rich. >> i can't see it. it is rolling around. >> reporter: with the price of gold hitting record levels these gold seekers now have plenty of company,

the german market now will be flooding into the gold bullion market and taking gold to incredible new highs against the euro well yes max you kind of jumped the gun here for me but i was going to say gas and enhanced and there he was tweeting that germany hit negative real rates as well for the first time since one nine hundred fifty seven part of it is the volatility happens things happen so fast in this financial include economic meltdown so here was bill gross being interviewed it was a tuesday morning and he's saying he was buying germany because there were real rates of return there but within a few hours of this article appearing bloomberg and harrison is reporting germany is just going to give right. this is a trend that wall spread around the world as the crisis really becomes more pronounced around the world nobody in any of the g eight or g twenty countries is doing the right thing which would be to start to negotiate a new bretton woods agreement and to recalibrate the world's currency and for the dollar to take a massive devaluation against all these other currencies nobod

we reported a few years ago that gold was selling out in germany so the germans were they sense this negative real rates coming and they were buying gold earlier then but now the portuguese are now buying it and the article points out that gold has advanced fifteen percent this year and treasuries by comparison have returned four point two percent so those are the two safe havens girl has returned fifteen percent treasuries four point two don't forget so over it's up more than thirty percent this year it was up seventy percent last year and this negative real interest rate story again as relates to gold is very interesting because negative real interest rates people equate with the flesh and and they equate deflation with an environment that is poorer for gold but historically a negative real interest rates are quote unquote deflation is actually the best time to be buying gold and so gold is working in either the deflation which is really another word for hyperinflation hyperinflation or inflation so there's really a no lose situation there's no top on goal because there's no amount

interest rates and that's negative purchasing power and oh by the way that's a good reason to buy gold but again we come back to gold well let's move on to the other aaa rated securities the past we downgraded the muni market prepares for a loss aaa ratings so the two point nine trillion dollars municipal bond market is preparing for hundreds and hundreds of downgrades after standard and poor's lowered the u.s. one level to double a plus the first ever reduction for the country so s. and p. is likely to cut its ratings i mean discipline debt secured by the federal government says just pre-funded bonds tax exempt backed by u.s. agencies and credits that are most dependent on federal spending. the aaa rating of the u.s. treasury bond is a reference rating there's connected to all these other aspects of the economy like the municipal bond market also on the corporate side i was just looking at zero hedge that made a good point that institutions like options clearing corp or the group that is responsible for clearing of shorts cells they're all being downgraded too so this is affecting the