With Silver breaking the $80 level and Copper testing $6, the commodity markets are signaling a structural shift that defies standard economic models. Jeremy Szafron, Anchor of Kitco News, sits down with Axel Merk, President of Merk Investments, to discuss why the post-WWII economic order has officially collapsed and has been replaced by a volatile new era of “State Activism.”
Merk argues that traditional market signals—like yield curves and P/E ratios—are failing because global asset prices are now driven by raw power dynamics rather than free-market efficiency. In this deep dive, we explore why the global trade architecture is fracturing and how “national security” priorities are creating a permanent floor for inflation, forcing capital into neutral reserve assets that carry no counterparty risk.
The discussion also issues a critical warning for investors regarding the mining sector. Despite record commodity prices, Merk explains why the “miner trade” may become a value trap in 2026. We analyze the growing divergence between physical metal markets and mining equities, looking at how rising input costs, windfall taxes, and jurisdictional risks in places like Venezuela and Europe are decoupling stock performance from the underlying spot prices.
Recorded on January 6, 2026
00:00 Introduction and Market Overview
01:13 Guest Introduction: Axel Merk
01:42 The New Era: Power Dynamics and Market Implications
03:14 Global Commerce and Precious Metals
04:53 Policy Uncertainty and Economic Impact
07:52 Venezuela: Investment Risks and Opportunities
10:49 State Activism and Market Reactions
18:55 Commodity Markets: Copper and Gold Insights
24:27 Government’s Role in Gold Prices
24:47 Economic Adjustments and Society’s Response
25:58 Market Rules and Volatility
30:08 European Economic Outlook
32:18 US Dollar and Global Reserve Currency
34:38 Precious Metals and Central Banks
41:01 Mining Companies and Investment Strategies
47:38 Investment Advice and Final Thoughts
Credit to : Kitco NEWS