A fund manager said that the uncertainty of 2025 may make prepared investors enjoy it.

Axel Merk, President and Chief Investment Officer of Merk Investments, recently stated that the global economy is on the brink of a cliff and various situations may arise.

Merk pointed out that as the market tries to determine which situation is most likely to occur, volatility increases. He added that President elect Trump's previous governing experience provided a blueprint for possible outcomes, but the current situation is very different from eight years ago.

He said, "The market is screaming, and everyone and their dogs know that change is coming, but we don't know what it will be like, we don't know what will happen. There are some potential factors in the economy that suggest it may be slowing down, but is that enough

Although the downside risks are increasing, Merk also pointed out that Trump's proposal to extend and increase the 2017 tax cuts may boost the economy.

Merk pointed out that there are so many possible scenarios that the Federal Reserve is in trouble. Although it is expected that the Federal Reserve will continue to cut interest rates in 2025, at the last monetary policy meeting of this year, it only hinted at two possible rate cuts. In September of this year, the Federal Reserve had expected to cut interest rates four times in the new year.

He said, "The framework of the Federal Reserve is: 'We cannot formulate policies based on what may happen, we must evaluate what is happening.' Therefore, they must wait for legal changes, see the impact, and then discuss whether this will lead to inflation. Their response will be slow

Merk stated that given these market conditions, gold, as a hedge against uncertainty, may continue to attract significant attention from investors even as market volatility continues to intensify. He said, "Personally, I will not sell any of my gold, and I have no intention of doing so. I believe the gold market has not yet peaked.

In addition to the economic proposals and central bank policies of the US government, Merk stated that gold remains an attractive asset as government spending is expected to continue to increase.

He said, "The fiscal situation doesn't seem to improve because our government wants to boost the economy. Some people may say that spending is too much, so it's worth paying attention to, but I don't think we'll see major welfare reforms

At the time of his remarks, the US Treasury is expected to exceed $36 trillion by the end of the year.

Although the US dollar is not expected to lose its reserve currency status soon, Merk stated that government debt will fuel the ongoing trend of de dollarization.

Concerns about fiat currency have always been a key support for Merk Investments, whose unique gold ETF has been experiencing sustained inflows and growth until 2024, contrary to broader market trends. The unique feature of this gold ETF is that investors can physically deliver their gold investments.

He said, "Obviously, there are different types of investors, some of whom are concerned about sustainability. These investors are very active, and their numbers are still growing

Meanwhile, Merk pointed out that conversations with institutional investors indicate a growing interest in gold as a long-term investment.

Although gold may fluctuate in 2025 as it reacts to social media posts and other news headlines, Merk stated that the market will remain healthy due to sustained interest.

He said, "There will be short-term traders buying and selling gold, but I don't think the interest of long-term investors has weakened. When we see prices falling, new buyers will come in. In my opinion, this indicates that this market is very dynamic and good.