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Why Investors Can't Trust the System – and Should Trust Gold
| From | Money Metals Exchange <[email protected]> |
| Subject | Why Investors Can't Trust the System – and Should Trust Gold |
| Date | June 16, 2025 3:13 PM |
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Breaking News from America's #1 Precious Metals Dealer
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Gold [link removed] Silver [link removed] IRAs [link removed] Monthly [link removed] News [link removed] Storage [link removed] Specials [link removed]
Money Metals News Alert
June 16, 2025 The war between Israel and Iran heated up over the weekend, but gold, silver, and oil have not reacted strongly to these developments.
At the same time, U.S. and European stock indexes started off strong today apparently shrugging off the conflict.
The Federal Reserve meets this week, and we'll learn more about whether to expect some rate cuts later this year. Currently, two are expected.
Friday's Close
(Weekly Gain/Loss)
Monday Morning
(Gain/Loss from Friday's Close)
Gold [link removed]
$3,447 (+0.7%) [link removed]
$3,429 (-0.5%) [link removed]
Silver [link removed]
$36.52 (+0.9%) [link removed]
$36.61 (+0.3%) [link removed]
Platinum [link removed]
$1,242 (+5.1%) [link removed]
$1,286 (+3.2%) [link removed]
Palladium [link removed]
$1,055 (-1.8%) [link removed]
$1,072 (+1.6%) [link removed]
Gold : Silver Ratio (as of Friday's closing prices) 94.4 to 1
Why Investors Can't Trust the System and Should Trust Gold
Share this Article: [link removed] [link removed] [link removed]
In a wide-ranging and candid interview [link removed] on the Money Metals podcast, host Mike Maharrey sat down with Axel Merk President and CIO of Merk Investments to explore the deepening divide between government fiscal behavior and investor interests.
[link removed]
The conversation centered on growing sovereign debt, entitlement reform avoidance, shifting macroeconomic dynamics, and the critical role of gold and silver in a volatile financial system.
Government vs. Investors: Conflicting Incentives
Merk began by highlighting a quote he first coined over 20 years ago: " The interests of a government in debt are not aligned with those of investors [link removed] ." He elaborated that governments with massive debt burdens have every incentive to allow inflation to erode that debt's real value. In contrast, investors aim to preserve purchasing power.
Merk cited Milton Friedman's famous observation that citizens always pay for government deficits either through taxation or inflation.
Referencing the recently proposed " Big Beautiful Bill [link removed] " an actual name used for a U.S. budget reconciliation measure Merk noted the CBO's estimate that the bill would add $2.4 trillion to the federal deficit.
Despite public claims of fiscal conservatism from lawmakers like House Speaker Mike Johnson, Merk argued that the lack of entitlement reform shows that "business as usual" continues. He added, "If you make all these promises, you've got to pay for them somehow or you've got to update the promises that you have made."
No Appetite for Reform, Only Kicking the Can
Merk recommended The High Cost of Good Intentions (2017) [link removed] for historical context on entitlement programs, showing how reforms rarely reverse expansionary trends. While Europe has shown that bond markets can force governments to act, the U.S. enjoys a much greater capacity to "kick the can down the road."
That said, Merk warned investors: " This game is rigged [link removed] . When the interests of government are not aligned with yours, it's something to be thinking about."
1 Oz Gold American Eagles (2024) [link removed] [link removed]
Shop Now >> [link removed]
He also cautioned that governments can change the rules unexpectedly especially when fiscal pressures mount making long-term planning for investors even more challenging.
Why Gold and Silver Still Matter
Turning to gold and silver as investment tools, Merk described the metals as essential in addressing systemic risk, particularly amid long-term inflation and global debt [link removed] . Merk's firm manages over $2.3 billion in gold and gold-mining assets, offering a unique view of both the physical and speculative ends of the metals market.
He distinguished physical gold investors whom he called "defensive" from gold mining investors who typically seek outsized returns with higher volatility. While large miners have recently underperformed expectations, their cleaner balance sheets now reduce their leverage to rising gold prices.
Merk noted the decline in the gold-to-silver ratio, pointing to silver's more industrial nature and sensitivity to economic momentum. He said the latest uptick likely reflects optimism around trade stabilization with China and a possible upward revision of the U.S. economic outlook.
Tariffs, Fragmentation, and Financial Plumbing
One of the most insightful moments came when Merk described the long-term consequences of tariffs and financial fragmentation [link removed] .
He warned that policies like Trump's proposed 10% baseline tariffs don't just shift trade they also change capital flows, leading to higher domestic financing needs and upward pressure on long-term interest rates.
Merk criticized the mainstream narrative that the U.S. dollar's dominance is unshakable. "There doesn't need to be an alternative," he said. "The alternative is greater fragmentation."
10 Oz Silver Bars (Generic) [link removed] [link removed]
Shop Now >> [link removed]
He warned that the erosion of global financial integration threatens the very plumbing that supports U.S. reserve currency status.
He also referenced Germany's moves to repatriate gold as a symptom of growing distrust in U.S. monetary stewardship and the weaponization of the dollar.
Caution, Complexity, and No Crystal Balls
Merk made clear that while he's bullish on gold, he avoids hard price predictions. "I don't have a crystal ball," he said. His goal is to provide "food for thought" and challenge assumptions.
He emphasized that the world is entering a "multipolar financial system" where many currencies not just the dollar play strategic roles [link removed] . That, in turn, will have unpredictable implications for investments, currencies, and gold prices.
Final Thoughts
Axel Merk left listeners with a sobering message: long-term fiscal pressures, lack of political will, rising tariffs, and financial fragmentation will continue to fuel uncertainty. Precious metals remain one of the few reliable hedges against these structural problems.
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Call Money Metals [link removed] for Precious Metals Coins,
Bars, and Rounds 1-800-800-1865
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Your Privacy [link removed] FAQs [link removed] Contact Us [link removed]
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This copyrighted material may not be republished without express permission. Offer only available through email promotion. Offer does not apply to previous orders and may not be combined with any other offer or program. Special shipping rates or other restrictions may apply to international orders. The information presented here is for general educational purposes only. Money Metals Exchange and its staff do not act as personal investment advisors. Nor do we advocate the purchase or sale of any regulated security listed on any exchange for any specific individual. While our track record is excellent, investment markets have inherent risks and there can be no assurance of future profits. You are responsible for your investment decisions, and they should be made in consultation with your own advisors. By purchasing from Money Metals, you understand our company is not responsible for any losses caused by your investment decisions, nor do we have any claim to any market gains you may enjoy. Money Metals Exchange is not a regulated trading ???exchange??? as defined by the CFTC and the SEC.
Money Metals Exchange
PO Box 2599
Eagle, ID 83616
[link removed] style="" Unsubscribe | [link removed] style="" Report Spam | [link removed] style="" View In Browser | [link removed] style="" Forward to a Friend | Ensure Email Delivery [link removed]
[link removed] style="" Unsubscribe | [link removed] style="" Report Spam | [link removed] style="" View In Browser
[link removed]
[link removed]
Gold [link removed] Silver [link removed] IRAs [link removed] Monthly [link removed] News [link removed] Storage [link removed] Specials [link removed]
Money Metals News Alert
June 16, 2025 The war between Israel and Iran heated up over the weekend, but gold, silver, and oil have not reacted strongly to these developments.
At the same time, U.S. and European stock indexes started off strong today apparently shrugging off the conflict.
The Federal Reserve meets this week, and we'll learn more about whether to expect some rate cuts later this year. Currently, two are expected.
Friday's Close
(Weekly Gain/Loss)
Monday Morning
(Gain/Loss from Friday's Close)
Gold [link removed]
$3,447 (+0.7%) [link removed]
$3,429 (-0.5%) [link removed]
Silver [link removed]
$36.52 (+0.9%) [link removed]
$36.61 (+0.3%) [link removed]
Platinum [link removed]
$1,242 (+5.1%) [link removed]
$1,286 (+3.2%) [link removed]
Palladium [link removed]
$1,055 (-1.8%) [link removed]
$1,072 (+1.6%) [link removed]
Gold : Silver Ratio (as of Friday's closing prices) 94.4 to 1
Why Investors Can't Trust the System and Should Trust Gold
Share this Article: [link removed] [link removed] [link removed]
In a wide-ranging and candid interview [link removed] on the Money Metals podcast, host Mike Maharrey sat down with Axel Merk President and CIO of Merk Investments to explore the deepening divide between government fiscal behavior and investor interests.
[link removed]
The conversation centered on growing sovereign debt, entitlement reform avoidance, shifting macroeconomic dynamics, and the critical role of gold and silver in a volatile financial system.
Government vs. Investors: Conflicting Incentives
Merk began by highlighting a quote he first coined over 20 years ago: " The interests of a government in debt are not aligned with those of investors [link removed] ." He elaborated that governments with massive debt burdens have every incentive to allow inflation to erode that debt's real value. In contrast, investors aim to preserve purchasing power.
Merk cited Milton Friedman's famous observation that citizens always pay for government deficits either through taxation or inflation.
Referencing the recently proposed " Big Beautiful Bill [link removed] " an actual name used for a U.S. budget reconciliation measure Merk noted the CBO's estimate that the bill would add $2.4 trillion to the federal deficit.
Despite public claims of fiscal conservatism from lawmakers like House Speaker Mike Johnson, Merk argued that the lack of entitlement reform shows that "business as usual" continues. He added, "If you make all these promises, you've got to pay for them somehow or you've got to update the promises that you have made."
No Appetite for Reform, Only Kicking the Can
Merk recommended The High Cost of Good Intentions (2017) [link removed] for historical context on entitlement programs, showing how reforms rarely reverse expansionary trends. While Europe has shown that bond markets can force governments to act, the U.S. enjoys a much greater capacity to "kick the can down the road."
That said, Merk warned investors: " This game is rigged [link removed] . When the interests of government are not aligned with yours, it's something to be thinking about."
1 Oz Gold American Eagles (2024) [link removed] [link removed]
Shop Now >> [link removed]
He also cautioned that governments can change the rules unexpectedly especially when fiscal pressures mount making long-term planning for investors even more challenging.
Why Gold and Silver Still Matter
Turning to gold and silver as investment tools, Merk described the metals as essential in addressing systemic risk, particularly amid long-term inflation and global debt [link removed] . Merk's firm manages over $2.3 billion in gold and gold-mining assets, offering a unique view of both the physical and speculative ends of the metals market.
He distinguished physical gold investors whom he called "defensive" from gold mining investors who typically seek outsized returns with higher volatility. While large miners have recently underperformed expectations, their cleaner balance sheets now reduce their leverage to rising gold prices.
Merk noted the decline in the gold-to-silver ratio, pointing to silver's more industrial nature and sensitivity to economic momentum. He said the latest uptick likely reflects optimism around trade stabilization with China and a possible upward revision of the U.S. economic outlook.
Tariffs, Fragmentation, and Financial Plumbing
One of the most insightful moments came when Merk described the long-term consequences of tariffs and financial fragmentation [link removed] .
He warned that policies like Trump's proposed 10% baseline tariffs don't just shift trade they also change capital flows, leading to higher domestic financing needs and upward pressure on long-term interest rates.
Merk criticized the mainstream narrative that the U.S. dollar's dominance is unshakable. "There doesn't need to be an alternative," he said. "The alternative is greater fragmentation."
10 Oz Silver Bars (Generic) [link removed] [link removed]
Shop Now >> [link removed]
He warned that the erosion of global financial integration threatens the very plumbing that supports U.S. reserve currency status.
He also referenced Germany's moves to repatriate gold as a symptom of growing distrust in U.S. monetary stewardship and the weaponization of the dollar.
Caution, Complexity, and No Crystal Balls
Merk made clear that while he's bullish on gold, he avoids hard price predictions. "I don't have a crystal ball," he said. His goal is to provide "food for thought" and challenge assumptions.
He emphasized that the world is entering a "multipolar financial system" where many currencies not just the dollar play strategic roles [link removed] . That, in turn, will have unpredictable implications for investments, currencies, and gold prices.
Final Thoughts
Axel Merk left listeners with a sobering message: long-term fiscal pressures, lack of political will, rising tariffs, and financial fragmentation will continue to fuel uncertainty. Precious metals remain one of the few reliable hedges against these structural problems.
[link removed]
[link removed]
[link removed]
Call Money Metals [link removed] for Precious Metals Coins,
Bars, and Rounds 1-800-800-1865
We Buy Back Too! [link removed]
Your Privacy [link removed] FAQs [link removed] Contact Us [link removed]
[link removed] [link removed] [link removed] [link removed] [link removed] [link removed] [link removed] [link removed]
Follow Us
This copyrighted material may not be republished without express permission. Offer only available through email promotion. Offer does not apply to previous orders and may not be combined with any other offer or program. Special shipping rates or other restrictions may apply to international orders. The information presented here is for general educational purposes only. Money Metals Exchange and its staff do not act as personal investment advisors. Nor do we advocate the purchase or sale of any regulated security listed on any exchange for any specific individual. While our track record is excellent, investment markets have inherent risks and there can be no assurance of future profits. You are responsible for your investment decisions, and they should be made in consultation with your own advisors. By purchasing from Money Metals, you understand our company is not responsible for any losses caused by your investment decisions, nor do we have any claim to any market gains you may enjoy. Money Metals Exchange is not a regulated trading ???exchange??? as defined by the CFTC and the SEC.
Money Metals Exchange
PO Box 2599
Eagle, ID 83616
[link removed] style="" Unsubscribe | [link removed] style="" Report Spam | [link removed] style="" View In Browser | [link removed] style="" Forward to a Friend | Ensure Email Delivery [link removed]
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