ASA Gold's Merk: The market is already pricing in a recession

Axel Merk, chief investment officer of the ASA Gold and Precious Metals fund, says that the market is pricing in a recession and the start of rate cuts down the road, and the gold market is already reacting because it tends to lead in these cycles. Merk makes the case for owning both precious metals and the mining companies now, though he notes their different risk profile and uses; he points out that both are being embraced now because the miners would be lumped in with all equities and poised for a takeoff if a recession is shallow, while the metal will be a diversifier in the event that a downturn is more severe and protracted.