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Axel Merk, President of Merk Investments, to discuss why the post-WWII economic order has officially collapsed and has been replaced by a volatile new era of “State Activism.”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
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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
#Economy #Markets #Gold #Copper #Investing #KitcoNews #JeremySzafron #AxelMerk #Geopolitics
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48 Comments
Axel makes a controversial call in this interview: Silver is at $80, but he warns the mining trade is a "trap" in this new era of state activism. He argues that power dynamics have fully decoupled from traditional economics, meaning the old correlations are broken.
We want to hear your position – are you betting on the miners finally catching up, or are you sticking strictly to physical and self-custody right now? Let us know below.
“There not doing the hedging to suppress the price they’re doing it cause they need to hedge something” -Axel Merk 2026.
"Darn heavy. Too hard to ship it around". When it's a thousand dollars an ounce, tell me that.
These are end times everything is changing. World war three and armageddon is just around the corner.
I'm new to crypto and have been experiencing some heavy losses. Could you share advice or strategies for beginners
Hindi dubbed also,
He had me until he said the believes there's no collusion in price manipupation on metals. I call bullsh*t. Big bullsh*t.😂
gold and silver are money, money doesn't form a bubble
They are not if interest rates rise enough large volumes of assets become liquidated very few will hold there gold and silver if you can get 14 percent on your savings
The big (bullion) banks are playing the game fairly?? The Federal government sure didnt think so. It's no conspiracy theory that JP Morgan paid one of the highest multi-million-dollar fines in history for spoofing. They were proven to be slamming down the price- it was no conspiracy theory.
this guy is a shill for wall street. Everyone in the real world is doing it very tough.
at 9:00 …… People of Venezuela, Did you hear this : "Propety Rights are the Foundation of Prosperity" !!
So FIGHT for your future, or get ripped off by America bully !
Please quit that lipstick
😂😂 people with lots of currency love gold. Silver is too heavy to ship around. It is only $80. What about when it is $100? BofA. PRICE to $156-$309.
back at $80 I wish
America, Never the Policeman of World, far back if not farther America since Filipino-America WAR 1899-1903, RAPE and Pillage.
Sounds like everything is working fine in a DS Fiat Debt Based System
Yes, SD Bullion and other market sources reported a significant, record-breaking cumulative silver deficit, exceeding 1.3 billion ounces since 2019, driven by demand outstripping supply, surging investment, and tight inventories, leading to real shortages and price volatility in late 2025. This "silver squeeze" highlights a growing gap between industrial/investment demand (solar, EVs, electronics) and limited mine supply, causing major market disruption and pushing prices higher.
This guy COMPLETELY OUT OF TOUCH WITH REALITY.
Tariffs are not important for Nathan security…complete lie
He's a smart guy, no doubt. It's surprising he buys into the nonsense "national security" justification for the Venezuela intervention. This was plain and simple regime change fueled by American greed, the same as we have seen for the last 8 decades.
Europeans? They are done. The destroyed them selves. They have absolutely nothing the world needs.
There is 4 years of house cleaning that is occurring. Implementing Ts plan is also occurring. Doesn't happen overnight.
Borrow? You own it if your paying for it. That is the housing fraud.
Crypto is a greatest money laundering tool ever invented.
When you can buy in one country and send it to another and can't stop it. End of story
This simple. When you are 1 of the big 4 countries in the world , and your greed produced a your biggest competitor to take the crown. The U.S. is saying maybe, but not without a fight.
If copper , nickel are in short supply wouldn't it be the same for silver? Since it is a biproduct of the other metals?
Great guest.
America is such a virus to the world
South Korea and China seem to have some success with mercantilism in government intervention and flea markets. Western government also intervening in their markets, but they don’t seem to do it as good a job and how they doing in the markets as the South Korean in Chinese with the government actually add value to the economy it seems.
Silver was volatile prior to it being a significant industrial metal. I took the volatility of the 1980s in 2011 two manipulation and too much use of leverage and the small market size..
It will be easier to Suppress and or use populism to your advantage . A.I along with, digital tracking, data mining, A.I profiling individuals , Algorithms. Gov using these to confuse divide the population make them weaken so authorities an swing the final blow. No matter how unpopular they are the Elites Mafia know how to stay in power…..Look at all the communist countries Cuba, Venezuela 🇻🇪 yet they dont have 20 camera on each corner street and A.I.
>>>…<<< The most wonderful aspect implied in AI is minimizing bean counting/ bureaucracy. Imagine cutting government haha.
Besides the new technological developments going for Silver the two major policy developments in its favor have no parallel in history: (1) US declaring silver to be a critical mineral, and (2) China putting curbs on the export of finished silver.
IMO these factors will have an ever lasting effect on the gold/silver ratio such that the low point in GSR where Gold becomes more favorable will now be much lower than previously believed.
Thoughts?
BRICS have a brilliant plan. They have been covertly accumulating Gold and Silver for the past 5 years. They will soon introduce a currency (maybe call it the Brick) and it will be backed by a basket of gold and silver. They will make the Brick the defacto reserve currency and trade currency for most of the world immediately. Keep in mind that the BRICKS represent over 50% of the global GDP and Trade volume. They will accomplish is 2 years what took the US over 50 years and the UK Pound over 100 years to accomplish
He's good. Real good.
No one trusts the US dollar thanks to Trump (and his predecessors) continuing the deficit and this is simply going to collapse the dollar. Japan is restarting the Yen printing presses on overdrive and they are already at the point of no return. The Euro zone is a complete basket case and they are so deep in the Ukraine war that the EU will fail if they continue the war or if they stop their war. Korea's currency is too small. Russia and China are on the "NO" list as a major reserve currency at this point. India would have been a potential reserve currency but they have severe currency controls plus no one wants what India makes so it will never become a major currency. Gold and Silver value will increase for at least the foreseeable decade. Both have been used as currency and trading medium for 6,000 + years . Krypto is all a ponzi scheme and within a few years will collapse to zero. That only leaves two safe places to move money to : Gold or Silver ! Remember Judas and his 30 pieces of Silver
If the US wants the resources of Venezuela then do what all law abiding entities do which is to make arrangements to buy them.
Dont be the bully that steals their lunch.
Amazing resilience in silver market! 😲
34:57
looks like someone can't read a chart. USD is 40%, gold 28% ON THAT SAME CHART, hence gold has not surpassed USD allocation in global reserves like the headline or like Jeremy suggests. Seriously guys !!
All three great powers are experiencing trade route disruption as economies regionalize.
A lot of double talk!
Power also mattered in the post-WW II era; a power constrained by mutual international agreements and rules and the economic and military dominance of America. The kind of power being exhibited by Trump and Putin and Netanyahyu is a raw, ugly, lawless, racist, authoritarian, anti-humanitarian type of power which destroys society, culture, and the environment.
The TRUTH shall set you free in 26’ till infinity lol No CAP ! ! !
the global police is now the global goon. Countries should just sell all their US bonds and teach the bully a lesson.
All the way with ASA! – Jim Dines
Come on sir, Ukraine is merely 4 year old symptom but Gaza is 7 decades old symptom… how can you compare the two
Why is Jeremy wearing 💄