A Trade War’s Positive Impact on Gold

The recent tariffs placed on China by the US signal a potential trade war, and that pushes investors to buy gold. Historically, gold is shown as a go-to safe haven when local and international events cause economic uncertainty.

In fact, after the President’s recent tariff increase of $200b on Chinese imports, exchange-traded gold contracts rose. Investors are taking an aggressive approach while the market fluctuates, and gold prices remain acceptable.

The 2019 market has indicated heightened optimism, but a possible trade war raises a red flag. While a viable trade agreement with China would lead to more fair and just process for the US, investors and politicians alike tend to respond with angst as these dealings can lead to economic woes or a global growth slowdown.

When To Invest in Gold

A crisis such as a trade war actually has a positive impact on gold. Even so, that positive impact rapidly changes as more investors get on board with this safe haven metal and cause prices to jump.

An impending slowdown is often the best time to diversify your portfolio and hedge with gold. A dip in the stock market drives investors to take action even though the standard rule says, “don’t sell during downturns,” according to S. Orman and many other investment strategists. A safe investment strategy during a downturn is simply to diversify, and gold is currently an appealing option.

What Countries Are Holding Gold?

Whether or not the US can avoid a trade war with China, analysts predict increasing gold prices. Bear in mind, China holds one of the largest supplies of gold. The Lovemoney.com site states, “China has 1,885.5 tonnes (metric tons) of gold in its reserves. It is also the world’s biggest gold producer, ahead of Australia and Russia, and the local demand for gold has been boosted by the burgeoning wealth of its growing middle class.”

The US has the most gold among all of the countries. “The United States of America is the country with the most gold in the world. It has 8,133.5 tonnes (metric tons) of gold bullion. That’s nearly as much as Germany, the IMF and Italy combined,” also according to Lovemoney.com. Italy, France, Russia and Switzerland also have gold in the thousands of metric tons.

A Lower Risk Investment—Gold

Since gold is said to remain strong even in the midst of a trade war, US investors must stay focused on the US national economy. While the US economy could slow, the position of worldwide countries is generally slower.

Should we see slower global growth throughout the year, regardless of a suitable trade agreement between the US and China, equities are projected to decline. This would make lower risk investments such as gold more desirable for investors.

The increase in central bank gold purchases is another key indication that gold is a hot commodity. They are purchasing precious metals at a faster rate than ever over the last 50 years. Not only that, gold volumes have increased more in the last year than since 1971, when the gold standard was dissolved.

As the central banks purchase more and more gold, they are driving smaller investors to diversify their financial portfolios with gold—a desirable lower risk investment to align with economical concerns.

Gold Purchases a Continuing Trend for Emerging Markets

International government banks will purchase precious metals no matter what the price, and they are increasing their supplies in emerging market economies to protect their own countries. With trade agreements in jeopardy, what better time for banks to buy gold? But this should concern small and large US investors.

As emerging markets snatch up gold, it is a critical time for the US to accumulate gold and individuals investors to diversify and hedge with gold. Central bank purchases are driving US investors, and the outlook for gold continues to spike.

Gold As Financial Insurance

Gold is often seen as a financial insurance to combat inflation or a potential disaster such as a trade war. Bankrate.com author and savvy investor, Drew Housman, wrote an article entitled, “The best personal investment decision I ever made was investing in gold — here’s why.” In his article, he makes several common sense claims about gold:

  • Gold retains its value
  • No other currency can match the staying power of gold
  • Gold performs well under many economic conditions
  • Gold buys a balanced portfolio

Housman said that he put 20% of his assets in gold after he made a poor decision in 2011 to pull out of stock market. He lost money. He then sought a more stable portfolio that included gold in order to handle a future volatile market situation. He believes the purchasing power of gold to be consistent throughout history.

What better financial insurance than gold—and now is the time to consider a gold-backed IRA or financial portfolio adjustment to include a percentage of gold. If a trade war breaks out, this safety net can secure your assets to withstand a downturn.

Financial Protection In The Case of a Crisis

Since the 2008 financial crisis, banks have been preparing for the financial risks of yet another crisis. They have fixed interest rates, issued credit, produced money, and supplied borrowers. While these actions may seem to be to the advantage of the people, they in fact trigger a false sense of security. The Dodd-Frank Wall Street Reform and Consumer Protection whereby the bank is now protected by your funds is a good example (see article).

As we prepare for any financial crisis including the results of an unwanted trade war, we as small or large investors must protect our assets. Financial protection begins with adding gold to your investment portfolio. Investing in this beautiful metal has two key advantages:

  • Purchasing gold to include in your investment portfolio gives you an asset that may not be degraded by the monetary policies of the central banks.
  • A gold investment does not involve the same risks as a paper currency deposit, especially in the case of an economical downturn.

Right now, gold is performing well. It is relatively inexpensive, resalable, and a reliable hedge against market fluctuations. Make gold a part of your investment portfolio today, and protect your future for tomorrow. While we do not want a trade war, gold is an asset that stands up against the worst crises.

Learn how a Gold, Silver, & Precious Metals IRA can help you hedge against inflation

The Collapse of Fiat Currency Is Gold’s Moment to Shine.

A dramatic transformation is unfolding in the financial landscape, as gold reclaims its position as the ultimate safe haven. Amid growing economic uncertainty, the U.S. dollar has lost over 40% of its purchasing power compared to gold in just the past year — a staggering decline that signals deepening erosion of confidence in fiat currencies.

Yet, despite this dramatic devaluation, the story has not made the headlines it deserves. This speaks volumes about the growing disconnect between financial reality and public awareness, as gold sees a remarkable 23% increase since the start of 2025, proving its resilience in an increasingly unstable global economy.

In a recent PBS article, reporter Bernard Condon says that economists fear that the recent drop in the dollar is so dramatic that it reflects something more ominous — a loss of confidence in the U.S.

“The safe-haven properties of the dollar are being eroded,” said Deutsche Bank in a note to clients earlier this month, warning of a “confidence crisis.”

Investors Turn to Gold as Fiat Fears Mount

For global investors, the message is clear: the dollar is no longer the unchallenged cornerstone of financial stability. With persistent inflation, record-breaking debt levels, and growing geopolitical uncertainty, many are opting for the tangible security of gold.

“Since 2023, gold’s gone from $1,800 to $3,400 an ounce,” Forbes Media Chairman and editor-in-chief Steve Forbes told Fox Business. “That’s a sure sign we’re going to have a weak dollar ahead, which means, ultimately, turbulence and higher prices in the marketplace. Just look at the 1970s, and we can see where that leads unless something is done about it now. But I don’t see any sign that the authorities have any idea, constructively, of what to do, sadly.”

According to Bank of America’s most recent Global Fund Manager Survey, a net 61% of participants anticipate a decline in the dollar’s value over the next year — the most pessimistic outlook of major investors in almost two decades.

A CNBC article published on April 21 highlights an even more worrying trend. As the U.S. dollar weakens, other central banks may be forced to devalue their own currencies just to stay competitive. This “race to the bottom” in global fiat currencies could ignite even more inflationary pressure worldwide, making gold all the more appealing for investors who want out of this volatile spiral.

Global Currency Devaluation May Be Just Beginning

The exodus from U.S. assets also shines a light on the broader crisis of confidence, with potential spillovers such as higher imported inflation as the dollar weakens. The drop in the U.S. dollar has prompted other currencies to appreciate against it, especially safe havens such as the Swiss franc, Japanese yen, and the euro.

This is no mere market correction or cyclical fluctuation. As Bloomberg Intelligence’s Mike McGlone and many others have noted, we’re in the middle of just the fourth-ever capital rotation event — a strategic shift of investments across asset classes, sectors or regions in response to market conditions, economic cycles, and performance trends. “Gold is now the most expensive ever versus the U.S. long bond market,” he observed, pointing to deep structural issues in the American economy and financial system.

Meanwhile, central banks around the world are bolstering their gold reserves at record rates, a move that signals long-term distrust in the global fiat system.

“Global trust and reliance on the dollar was built up over a half century or more,” University of California, Berkeley, economist Barry Eichengreen told PBS. “But it can be lost in the blink of an eye.”

As the dollar falters, gold is reclaiming its historic role as the foundation of monetary confidence. For investors seeking real, enduring value, the message has never been clearer: the future is golden.
“Gold is clearly seen as the favored safe-haven asset in a world upended by the trade war,” Nitesh Shah, commodities strategist at WisdomTree, told Reuters. “The U.S. dollar has depreciated and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished.”

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Gold Breaks $3,300: Experts Say $4,000 Is Now in Sight

Gold soared past the $3,300 mark on April 16, once again shattering an all-time high as investors and retirees continue to seek safety amid growing global uncertainty. The precious metal climbed more than 6% in the last week and is up over 25% year to date, fueled by escalating U.S.–China trade tensions, a faltering dollar, aggressive central bank buying and recession fears.

“Gold is clearly seen as the favored safe-haven asset in a world upended by the trade war,” Nitesh Shah, commodities strategist at WisdomTree, told Reuters. “The U.S. dollar has depreciated and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished.”

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New Tariffs Crush the Stock Market: Why Gold Is the Safe Haven You Need NOW

The stock market was already beginning to crumble this year under the weight of inflation, economic uncertainty and the threat of global war. But since the latest tariffs went into effect on April 2, the stock market has been dealt yet another devastating blow — while gold continues to stand strong and see record stability.

On April 4, the S&P 500 fell 291 points (5.4%) by the afternoon, while the Dow Jones tumbled 2,150 points (5.3%) and the Nasdaq slid 5.8%. The free-fall carried over from the previous day, when the indexes recorded their biggest one-day drop since 2020, with $2.5 trillion in investor wealth being erased from the S&P 500. The Dow and S&P 500 each sank more than 4%, while the tech-heavy Nasdaq plunged nearly 6%.

Despite these incredibly uncertain times, gold is up nearly 3% over the last month, while the S&P 500 is down over 13%. This stark contrast highlights gold’s resilience as a safe-haven asset when traditional markets falter. As investors scramble for stability, the surge in gold prices continues to underscore its long-standing reputation as a reliable store of value in times of crisis.

The Impact of Trump’s Tariffs on the World

The latest tariff announcements include steep levies on key imports, particularly from China, the European Union and Mexico. In response to Trump imposing 34% tariffs on Chinese goods — which were already subject to a 20% levy — China hit back on April 4 with a 34% tariff on all U.S. products starting on April 10.

This comes after Canadian Prime Minister Mark Carney said that Canada will match Trump’s 25% auto tariffs with a tariff on vehicles imported from the United States.

“We take these measures reluctantly — and we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said.

One of the most concerning aspects of these tariffs is their inflationary impact. Higher import costs will translate to rising prices for goods, squeezing American households already burdened by inflationary pressures. Companies facing higher production costs may either pass expenses onto consumers or cut jobs to maintain profit margins — both scenarios spell trouble for economic stability.

Gold’s Surge Amid Market Chaos

Historically, gold has served as a hedge against economic uncertainty. In today’s uncertain and scary times, that has been rang more true. While equities crumble under the weight of trade tensions, gold has surged by more than 12% since the start of the year, while the S&P 500 has plummeted by over 15%.

Gold’s appeal lies in its independence from government policy and currency devaluation. Unlike fiat money, which can be manipulated through monetary policy, gold maintains intrinsic value, making it a trusted store of wealth in times of crisis. With fears of a prolonged trade war and potential stagflation on the horizon, investors are ditching the uncertainty of stocks and moving their hard-earned capital into tangible assets.

Why Investors Are Turning to Gold

With global instability accelerating, more investors are seeking protection — not speculation. High-risk assets like stocks are increasingly vulnerable to sudden shocks, policy changes, and economic downturns.

While stock traders brace for more volatility, Deutsche Bank, one of the world’s leading financial services providers, is looking beyond the panic — and betting big on gold. The bank just raised its average price forecasts for gold to $3,139 for 2025 and $3,700 for 2026, signaling strong long-term confidence in the precious metal.

“We conclude that the bull case for gold remains strong despite this week’s correction and further upgrade our year-end forecast to $3,350/oz.,” the bank said in a statement on April 7.

This shift reflects a growing recognition: gold isn’t just a hedge, it’s a foundation for financial security. In times like these, where headlines shift hourly and markets react in real time, gold remains a steady and trusted asset.

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