Axel Merk spoke with Greg Hunter of USAWatchdog about his reasons for buying gold. For Merk, it comes down to two things. First, the Federal Reserve and other central banks have trapped themselves – real interest rates need to remain near zero or negative. Second, basic valuations are way overextended – US stocks and the dollar are both due for painful corrections.
The dollar isn't has healthy as it used to be. The story line had been that rates are going to go through the roof, because everything is fantastic in the US and everywhere else is going to go to hell. The real world is more tones of grey. In that sort of environment, the dollar, just like the stock market, is way over extended…”
Video Length: 00:24:14
Highlights from the interview:
