FICC Focus Macro Matters: Gold and Gold Stocks With Merk Investments CIO
7 snips
Oct 16, 2025 In a captivating discussion, Axel Merk, Founder and Chief Investment Officer of Merk Investments, delves into gold's recent surge. He attributes the rally to speculators and institutional buying, while retail investors have largely sold off. Merk emphasizes the importance of effective management in gold production and explains the intriguing relationship between real yields and gold prices. Additionally, he highlights the roles of central banks in driving demand and the challenges within the precious metals sector, including the need for technological advancements in mining operations.
AI Snips
Chapters
Transcript
Episode notes
Gold's Shifting Correlations And Diversification
- Gold has near-zero long-run correlation with other assets but its correlations shift over time and can be positive or negative.
- Gold provides diversification and miners add volatility that can boost portfolio returns when managed well.
Don't Time Short-Term Miner Volatility
- Avoid trying to time extreme daily moves in gold mining stocks because volatility can be dramatic and unpredictable.
- Stick to your mandate and accept being a taker of speculator-driven volatility unless you have explicit skill in short-term trading.
Speculators Returned As Crypto Went Quiet
- Axel recounts that crypto and meme speculators shifted attention away from gold, but recently gold has regained excitement.
- That returning speculator increases volatility but is mostly noise compared with institutional flows.