Junior gold miners benefit from lower interest rates and easing credit conditions, and there is good value in the sector because the market prices in lower precious metals prices, leading to favorable margins and leverage.
Due to fiscal dominance, unsustainable deficits, and global fragmentation, the US dollar is likely to weaken in the medium term as the best growth debt can buy is associated with a weaker currency.
Axel Merk is heavily invested in gold and precious metals because he sees good value despite the recent runup, and gold tends to benefit from policy makers' reactions to supply shocks and monetary policy inefficiencies.
Shorting the long bond is not advisable because it is a negative carry trade that requires continuously paying interest, and there are better, less costly ways to play the theme of higher yields.