Why Wall Street’s Gold Guru Thinks the “Fringe” Just Went Mainstream

Gold isn’t just glittering—it’s exploding into the financial mainstream. And few people understand the dynamics of that shift better than Axel Merk, President and Chief Investment Officer of Merk Investments . Merk has quietly grown his firm into a powerhouse managing roughly $2.9 billion in gold and gold miners—more than double what it oversaw just a year ago. When fringe fears become mainstream allocations, you know something bigger is at play.

That’s why AInvest’s Adam Shapiro sat down with Merk for the latest Capital & Power short. The discussion zeroes in on gold's resurgence , its role as a diversifier, and why investors should think carefully about risk—not just returns. Whether you’re a seasoned market watcher or a 401(k) saver wondering how to hedge against uncertainty, this is a conversation you can’t afford to miss.

Why Axel Merk?

If you’re asking why his perspective matters, the credentials speak for themselves. Merk is more than just a fund manager—he’s a macro thinker with decades of experience dissecting central bank policy, global markets, and the psychology of investors. He holds a B.A. in Economics (magna cum laude) and an M.Sc. in Computer Science from Brown University. His firm, Merk Investments, has built a reputation for managing liquid global markets across equities, fixed income, commodities, and currencies, but gold is where Merk’s conviction—and track record—really shines.

He’s also been a sought-after speaker, contributor, and author, often cited for his clear, no-nonsense analysis of how big macro forces filter down to everyday portfolios. In other words: Merk doesn’t just buy shiny rocks. He dissects how government spending, monetary policy, and investor psychology converge to make gold either soar—or whipsaw.

Why Gold, Why Now?

Merk notes that gold has always had three types of buyers: the true “gold bugs” worried about the dollar and fiscal sustainability; the diversifiers, who want an asset uncorrelated to equities; and the speculators, who chase momentum wherever it goes. For years, those speculators fled to meme stocks and crypto. But as gold has broken out to new highs, many of them are coming back—driving volatility and liquidity into the sector.

And volatility is the keyword here. As Merk puts it, gold’s volatility can rival the S&P 500. In other words, this “safe haven” isn’t safe in the regulatory sense—it moves, sometimes violently. The fact that gold can rip higher just as quickly as it can correct is exactly why understanding how to allocate—and how much to allocate—is critical.

Miners: The Leveraged Play

The conversation also digs into one of the most misunderstood aspects of gold investing: miners. The theory is simple—if gold rises, miners should benefit disproportionately because their costs are relatively fixed. The reality? Rising commodity costs, wage pressures, and government taxes often squeeze margins just as the metal rallies.

That’s left many investors frustrated in past cycles. But Merk argues today’s environment could be different. Costs are more contained, margins are wider, and juniors—those small exploration firms with explosive potential—haven’t yet caught up with majors. Translation: the dispersion of returns in the mining sector is huge, and active management matters. Pick wrong, and you’ll get crushed. Pick right, and the upside can be spectacular.

Process Over Panic

When Shapiro pressed him on how the average equity-heavy investor should approach gold, Merk’s advice was deceptively simple: have a process. Without one, you’ll chase headlines, follow the loudest voices, and end up holding assets for the wrong reasons. He emphasizes that even a small allocation to gold or miners can deliver diversification benefits, but only if investors are clear about why they bought in—and when it might be time to trim.

The Bigger Picture

Beyond gold, Merk shared his macro lens on asset prices overall. He points out that greed and fear still drive markets, but the anchor is always Federal Reserve policy. As rate cuts trickle through the economy, that tailwind pushes asset valuations higher. For traditional equities, that’s a green light. For gold, the real kicker comes if the economy slides into a deeper recession—when gold and miners historically outperform.

In short, we’re in a sweet spot: easing monetary conditions and lingering fears have positioned gold for a renaissance. And as Merk makes clear, the space is no longer niche. The flows he’s seeing aren’t just from die-hard gold bugs—they’re from mainstream investors looking for protection in an uncertain world.

Don’t Miss This

Gold is hitting new highs. Volatility is back. Speculators are circling. And Axel Merk is right in the middle of it all. For anyone thinking about whether to hedge risk, diversify portfolios, or chase upside in a sector that’s finally catching fire, this Capital & Power short is essential viewing.

Click play to watch Adam Shapiro’s full conversation with Axel Merk—because if you think gold is just another commodity story, you’re missing the bigger picture.