Portfolio Manager discusses gold as an inflation hedge with the Christian Science Monitor

“ 'One of the explanations is that investors are unwinding those purchases and going back into riskier assets,' says Axel Merk, president of the Merk Mutual Funds in Palo Alto, Calif., which invests in strong currencies and gold.

'But some believe there is going to be more inflation in the US than other countries,' Mr. Merk adds. 'And buying gold is seen as a hedge against that.' "