The Julia La Roche Show #290 Axel Merk: Fiscal Views Moving From Fringe To Mainstream Driving Gold's Record Surge
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Sep 25, 2025 Axel Merk, Chief Investment Officer of Merk Investments, shares insights on gold's record highs and the shift of fiscal sustainability concerns into mainstream discourse. He explores the divide between conservative gold investors and speculative miners, emphasizing the significance of management quality in developers. Merk critiques the Fed's micromanagement of the economy, linking it to inefficient capital allocation. He also discusses the changing dynamics of gold's market and advises on personal investment strategies to navigate the current environment.
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Tariffs Rattle Financial Flows
- Axel Merk says tariff-driven shifts in trade also reroute financial flows and raise domestic borrowing costs.
- He links this to rising long-term rates and increased pressure on the Fed amid weak fiscal discipline.
Fringe Fiscal Fears Go Mainstream
- Merk argues fringe worries about fiscal sustainability have moved mainstream as monetary policy enables fiscal irresponsibility.
- He says central banks' interventions reduce political incentives to fix pensions and deficits.
Price Moves Reflect Perception Shifts
- Gold's price reflects changing perceptions, not the metal itself, and small market flows can cause big moves.
- Merk finds the limited size of the gold market and shifting investor attention key to recent volatility.