In this #Millettian Natural Resource Stocks conversation, host Steve Yang sits down with Axel Merk, President and Chief Investment Officer at Merk Investments, to dissect why gold is trading above four thousand two hundred and why that price is only the surface of a much bigger story.
Merk Investments
Axel explains how different tribes of gold holders from inflation worriers to diversification seekers speculators and central banks have all stepped back into the market and why weaponization of the dollar confiscation of reserves and sanctions have quietly broken the old link between gold and traditional real yield models. He walks through how tariffs and disrupted trade flows are clogging the currency plumbing behind exorbitant privilege and forcing more of United States deficit financing onto domestic shoulders which in turn pressures long term yields and central bank policy.
From there the discussion zooms out to fragmentation and deglobalization. Axel argues that the mostly peaceful era since World War two is over and that conflicts from Gaza to Ukraine are symptoms of a new world where shipping routes are less safe regional powers like Turkey assert themselves and the global cost of doing business keeps rising. That shift along with political reluctance to confront deficits is in his view a core reason why precious metals are behaving the way they are today.
Steve presses Axel on whether this cycle looks more like the two thousands gold bull or the nineteen seventies and why bonds no longer deliver the diversification investors once assumed they would. Axel lays out how activist industrial policy tariffs and national security spending echo past policy mistakes and why he sees more resonance with the nineteen seventies playbook especially when politicians refuse to live within their means and voters resist any change to entitlements. He also digs into tariffs as a backdoor national sales tax and why a system of endless exemptions risks breeding rather than draining the swamp.
In the final segment Axel shares how Merk Investments is positioned in this environment across physical gold and precious metals mining strategies with more than three billion in assets under management and why he believes investors should focus less on guessing the next tick in the gold price and more on understanding regime change in policy deficits and geopolitics.
Money Metals Exchange
Gold Eagle
This interview is for viewers who want a clear macro framework for gold the dollar and policy risk rather than another price prediction. The opinions expressed are solely those of the guest and do not necessarily reflect those of Natural Resource Stocks.
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