What's Driving The Boom In Gold? | Axel Merk & team

The gold price is at a nominal all-time high. What does that signal?

This is the first of two back-to-back “special report” interviews this week.

Tomorrow’s will be a live interview with Ryan Bohl, geopolitical analyst and Middle East specialist for RANE/Stratfor. We’ll be making sense of the escalation in hostilities between Iran and Israel.

But that will be tomorrow. Today’s interview has do with gold.

Why? Because the price of gold has experienced a breakout over the past month and a half.

What does that signal?

Is it a sign that investors are worried about higher inflation to come?

Or that capital is fleeing to safety in advance of approaching economic trouble?

Or is this price surge due to speculative zeal?

For answers, I sat down with capital manager Axel Merk and his team at Merk Investments, who manage several funds that invest in the precious metal sector.

I also asked them their thoughts on the future prospects of the gold and silver mining companies.

Will their performance catch up to, and perhaps outpace that of the metals soon?

All is addressed in today’s interview. To watch, click here or on the image below:

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Adam’s Notes: Merk Investments team (recorded 4.11.24)

Executive Summary:

• Axel attributes most of the recent gold price increase to foreign central bank buying, surging retail demand in China, heightened geopolitical concerns, worries of returning inflation, and investors diversifying out of assets like Tech stocks that have experienced massive gains.

• Notably absent to the party so far has been the US buyer, both institutional and retail. Capital flows into the major gold ETFs has remained weak throughout gold’s recent rally.

• However, Axel also believes we are starting to see initial signs of