#425 Axel Merk: I Sat Down With Kevin Warsh — What the Fed Is Really Up To and Where Gold Goes Next

<p>Axel Merk, founder and CIO of Merk Investments, which manages about $2.5 billion, joins Julia ahead of this week’s FOMC meeting. He explains why Fed Chair Kevin Warsh’s goal of “removing a dose of accommodation” means a tightening bias without a sledgehammer. He also explains why gold has fallen during the Iran war: markets treat it as a temporary supply shock that pushes real rates higher. And he describes the decoupling he’s watching for that could free gold from the conflict. Merk, who met with Warsh at the Fed in August, says Warsh has been consistent and is trying to pull the Fed back from micromanaging the economy and from heavy forward guidance. He also describes the institutional pushback Warsh faces. He breaks down the four kinds of gold buyers and sees near-zero odds of a hike this week. He warns that the AI debt binge could eventually force lower rates. And he argues that AI’s massive capital needs are leveling the playing field for gold miners, which he calls some of the cheapest assets out there.</p><p>Thank you to our partners</p><p><strong>Augusta Precious Metals</strong> — To learn more, visit <a href="https://juliabuysgold.com/">https://juliabuysgold.com/</a> or text “Julia&quot; to 35052</p><p><strong>Monetary Metals</strong> - learn more at <a href="https://www.monetary-metals.com/julia/">https://www.monetary-metals.com/julia/</a></p><p><br></p><p><strong>Links:</strong><br>https://www.merkinvestments.com/<br>https://x.com/axelmerkTimestamps:</p><p><br>Timestamps:</p><p>0:00 Welcome Axel Merk<br>1:05 The big picture: Warsh’s “dose of accommodation”<br>3:17 Iran, the Israeli election and the midterms<br>5:27 Why gold fell during the Iran war<br>7:49 Will gold decouple from Iran?<br>9:50 The four types of gold buyers<br>12:18 Who is Kevin Warsh? Meeting him at the Fed<br>15:16 What Fed independence really means<br>17:40 Forward guidance: referee, not player<br>20:24 What it’s like in the room<br>21:07 Why not just abolish the Fed?<br>24:18 What markets look like with a narrower Fed<br>27:34 Blaming the Fed for populism<br>29:56 Warsh’s cat-herding challenge<br>31:18 Hike or hold this week?<br>33:26 Volatility, cash and how to size risk<br>36:03 Why he’s heavy in gold miners<br>39:13 Parting thought: invest in your health</p><p><br></p><p>The content of this podcast is provided for informational, educational, and entertainment purposes only and does not constitute financial, investment, tax, or legal advice. Nothing discussed should be i