Politics

Fed Policy: What’s Your Exit?

And the simplest insurance against the mania of policy makers may well be gold. That doesn’t mean gold will always go up; it doesn’t even mean gold will go up more than, say, silver. But gold is influenced by fewer dynamics than other commodities because of its comparatively low industrial use. The fact that it’s ‘just a brick’ is a feature rather than a bug: because it’s not the gold that’s changing, it’s the value of the dollar or currencies. For more details as to why I own gold, please download “Why I Own Gold”.

We have a webinar coming up discussing in more detail and more specifically what investors can do to prepare themselves for a potential Fed exit from the ultra-low interest rate environment. Please register to be notified of our upcoming webinars.

If you haven’t done so, also make sure you sign up for Merk Insights. If you believe this analysis might be of value to your friends, please share it on your favorite social media site.

Axel Merk

Axel Merk is President and Chief Investment Officer, Merk Investments,
Manager of the Merk Funds.