Power Now Drives Markets as the Old Economic Order Breaks Down Says Axel Merk

With Silver breaking the $80 level and Copper testing $6, the commodity markets are signaling a structural shift that defies standard economic models. Jeremy Szafron, Anchor of Kitco News, sits down with Axel Merk, President of Merk Investments, to discuss why the post-WWII economic order has officially collapsed and has been replaced by a volatile new era of "State Activism."Merk argues that traditional market signals—like yield curves and P/E ratios—are failing because global asset prices are now driven by raw power dynamics rather than free-market efficiency. In this deep dive, we explore why the global trade architecture is fracturing and how "national security" priorities are creating a permanent floor for inflation, forcing capital into neutral reserve assets that carry no counterparty risk.The discussion also issues a critical warning for investors regarding the mining sector. Despite record commodity prices, Merk explains why the "miner trade" may become a value trap in 2026. We analyze the growing divergence between physical metal markets and mining equities, looking at how rising input costs, windfall taxes, and jurisdictional risks in places like Venezuela and Europe are decoupling stock performance from the underlying spot prices.Recorded on January 6, 2026Follow Jeremy Szafron on X: @JeremySzafron (https://twitter.com/JeremySzafron) Follow Kitco News on X: @KitcoNewsNOW (https://twitter.com/kitconewsnow) Follow Axel Merk on X: @AxelMerk (https://twitter.com/AxelMerk)00:00 Introduction and Market Overview 01:13 Guest Introduction: Axel Merk 01:42 The New Era: Power Dynamics and Market Implications 03:14 Global Commerce and Precious Metals 04:53 Policy Uncertainty and Economic Impact 07:52 Venezuela: Investment Risks and Opportunities 10:49 State Activism and Market Reactions 18:55 Commodity Markets: Copper and Gold Insights 24:27 Government's Role in Gold Prices 24:47 Economic Adjustments and Society's Response 25:58 Market Rules and Volatility 30:08 European Economic Outlook 32:18 US Dollar and Global Reserve Currency 34:38 Precious Metals and Central Banks 41:01 Mining Companies and Investment Strategies 47:38 Investment Advice and Final Thoughts#Economy #Markets #Gold #Copper #Investing #KitcoNews #JeremySzafron #AxelMerk #GeopoliticsDisclaimer:  The videos are not intended to provide trading advice, and the views expressed do not necessarily reflect those of Kitco Metals Inc. Kitco News, its anchors, producers, and reporters are not responsible in any way for the performance or actions of any sponsor, advertiser or affiliate of Kitco News. In no event will Kitco and its employees be held liable for any indirect, special, incidental, or consequential damages arising out of the use of the content in this video.