Video News/Outlook 2026

Axel Merk says the post World War II economic order has broken down, replaced by a volatile era he describes as “State Activism,” where power dynamics now drive markets more than traditional signals. Speaking with Kitco News Anchor Jeremy Szafron, Merk pointed to silver breaking $80 and copper testing $6 as signs of a structural shift that defies standard models such as yield curves and price to earnings ratios. He argued that global asset prices are increasingly shaped by national security priorities rather than free market efficiency, creating a permanent floor under inflation and forcing capital toward neutral reserve assets with no counterparty risk. Merk also issued a caution for investors focused on mining equities. Despite record commodity prices, he warned the “miner trade” risks becoming a value trap in 2026 as rising input costs, windfall taxes, and jurisdictional pressures erode profitability. He highlighted growing divergence between physical metal markets and mining stocks, citing geopolitical risks in regions such as Venezuela and Europe as key factors decoupling equity performance from underlying spot prices. Thanks to our sponsor, Discovery Silver, for making this coverage possible.