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Axel Merk, President of Merk Investments, to discuss why the post-WWII economic order has officially collapsed and has been replaced by a volatile new era of “State Activism.”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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The videos are not intended to provide trading advice, and the views expressed do not necessarily reflect those of Kitco Metals Inc. Kitco News, its anchors, producers, and reporters are not responsible in any way for the performance or actions of any sponsor, advertiser or affiliate of Kitco News. In no event will Kitco and its employees be held liable for any indirect, special, incidental, or consequential damages arising out of the use of the content in this video.
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24 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.
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