Tom Bodrovics welcomes Axel Merk, the founder, CEO, and CIO of Merk Investments to the show. Together they focus on the current state and future prospects of gold mining investments. Merk expresses that while gold miners have had a remarkable run, they still present a bargain due to the higher price of precious metals not being fully reflected in miner valuations. He notes increased interest from generalist investors and speculators returning to the sector.

Merk notes that gold miners are currently experiencing better margin expansion, which could attract more capital. He discusses the logistical challenges and differences between gold and silver markets, noting that silver’s industrial use makes it more volatile. He attributes gold’s strength to factors like tariffs disrupting currency flows, the weaponization of the dollar, activist politics, and easing monetary policies.

Axel also touches on the depreciation of fiat currencies and the potential for a revaluation of other assets, which could impact gold’s performance. The conversation shifts to the independence of the Federal Reserve, with Merk arguing that maintaining independence is crucial to avoid reckless government spending and inflation. He criticizes the Fed’s involvement in fiscal policy decisions and advocates for a return to basics.

Merk also discusses the potential implications of geopolitical tensions and resource nationalism, suggesting that these factors could drive up the cost of doing business and benefit gold. Merk advises investors to focus on risk management and be prepared for volatile times ahead. He emphasizes the importance of investing in well-managed teams with proven track records in the mining sector.