Brace for Volatility-Look for Protection-Axel Merk…“The risk is something is going to blow up”
By Greg Hunter
December 11, 2013
Money manager Axel Merk says, “I think no matter what kind of data we are going to have going forward, brace yourself for volatility, and you may want to look for protection.” What kind of protection is he talking about? Merk says, “I do hold a substantial part of my net worth in gold because I don’t like anything else out there. . . . It is terrifying to be in stocks in my view, and I sleep much better at night with my gold holdings.” Merk goes on to say, “. . . Real wages have been stagnant for a decade, but when the cost of living goes up, you have revolutions in the Middle East . . . you have Occupy Wall Street and the Tea Party in the U.S. That means less political stability and more government intervention.” For investors, there is some good news. Merk, who manages nearly a half billion dollars, says, “The only good news in all of this is that policymakers are predictable. That provides opportunity such as shorting the yen or buying some gold.” Merk predicts, “The risk is something is going to blow up, but the more likely scenario is that we’re going to just keep our heads spinning . . . and we’ll talk again at gold $3,000, and they are still going to say gold is worthless.” Merk concludes, “We have less stability in the world. It is a global phenomenon.” Join Greg Hunter as he goes One-on-One with President of Merk Investments, Axel Merk.