Trump, Tariffs & Trade: The Surge of Gold & Silver
Published on 2th May, 2025
April 2025 has been an eventful month for the precious metals market. In a matter of weeks, gold surged to a new all-time high of USD $3,350 per ounce (Gold Price) and silver surged to near all-time highs of USD $33.5 per ounce (Silver Price), fueled by rising geopolitical tensions and renewed uncertainty in global trade. President Donald Trump’s recent tariff announcements sent shockwaves through financial markets, driving a powerful wave of safe-haven buying.
Investors aren’t just reacting emotionally — they’re making strategic decisions to protect and grow their wealth in a changing world.
In fact, central banks remained bullish on bullion in early 2025. In January, they recorded a net purchase of 18 metric tons of gold, followed by 24 metric tons in February. By the end of Q1 2025, total net purchases reached 244 metric tons, highlighting continued strong demand for gold as a reserve asset (World Gold Council).
At J. Rotbart & Co., we’re here to help you navigate this turbulence, take advantage of these new opportunities in the gold and silver markets, and protect your wealth.
Here’s a closer look at what’s happening — and why it matters for your portfolio.
Trump’s New Tariffs Stir Global Anxiety
In early March 2025, President Donald Trump announced a new round of tariffs, invoking his authority under the International Emergency Economic Powers Act (IEEPA). These measures included a universal 10% tariff on all imports effective April 5, 2025 (BBC). Higher, reciprocal tariffs have been imposed on countries with significant trade deficits with the U.S., notably China. The effective tariff rate on Chinese goods has escalated to 54% (NBC News).
This aggressive move aimed to protect American industries but quickly sparked global retaliation, as Canada, the European Union, and China announced countermeasures within weeks. In late March, Canada announced a 25% tariff on over $21 billion worth of U.S. goods (CNBC). Meanwhile, China struck back even harder, announcing 125% tariffs on a wide range of U.S. goods, effective April 12, 2025 (CNBC).
Markets reacted sharply. Fears of a prolonged global trade war, supply chain disruptions, and higher consumer prices sent equities tumbling and pushed investors towards gold and silver as safe-haven assets. Gold prices surged to a new all-time high of USD $3,350 per ounce and silver surged to near all-time highs of USD $33.5 per ounce. This strong reaction highlights a fundamental truth: Precious metals thrive during times of uncertainty.
10 Year Gold Price in USD per Ounce
10 Year Silver Price in USD per Ounce
Why Gold and Silver Are Rising
Several factors combined to push gold and silver prices higher:
1. Safe-Haven Demand
Investors seek stability whenever trade policies shift rapidly and stock markets turn volatile – Gold has always been THE go-to asset for uncertain times. The new tariffs triggered fears of higher consumer prices, supply chain disruptions, and slower global growth — all classic conditions where gold shines.
Silver also benefited, not just as a safe haven but because of its dual role. While silver is a monetary metal, it also has industrial uses. The Silver Institute forecasts that global silver demand will hit a record 1.2 billion ounces in 2025, driven primarily by the green energy transition and electrification trends (Silver Institute). Trade disruptions could tighten supplies, making silver even more attractive.
2. Weaker U.S. Dollar
The announcement of tariffs put pressure on the U.S. dollar. The U.S. Dollar Index (DXY) fell by nearly 4% in April alone (Reuters). Historically, gold and silver move inversely to the dollar. Since gold and silver are priced in dollars, a weaker dollar makes them cheaper for investors holding other currencies, boosting demand.
Year To Date U.S. Dollar Index (DXY)
3. Inflation Fears
Tariffs often lead to higher input costs, which companies pass on to consumers, fueling inflation. Precious metals, especially gold, are historically strong hedges against inflation, making them increasingly attractive to investors seeking protection.
4. Rising Geopolitical Risks
Beyond trade tensions, ongoing geopolitical flashpoints — including conflict hotspots in Eastern Europe and the Middle East and Asia-Pacific — are adding another layer of risk. Precious metals provide a reliable store of value when geopolitical uncertainty rises.
What This Means for Investors
If you already own gold and silver, you’re likely seeing strong gains. But whether you’re a seasoned precious metals investor or just beginning your journey, it’s important to recognize three key lessons from the recent market moves:
1. Timing Matters — But Diversification Is Key
Trying to “time the market” perfectly is almost impossible. Instead, building a well-diversified portfolio that includes gold and silver gives you a strong foundation that can weather economic storms.
2. Political Risks Are Financial Risks
Trade wars, elections, and geopolitical tensions will likely keep markets turbulent through 2025. Having exposure to precious metals is a way to hedge against sudden market shifts caused by political developments.
3. Physical Precious Metals Offer True Security
While ETFs and mining stocks are popular, owning physical gold and silver — stored securely — provides unmatched security. Physical assets aren’t exposed to counterparty risk, making them a true safe haven.
How J. Rotbart & Co. Can Help
At J. Rotbart & Co., we specialize in tailored precious metals solutions to help clients safeguard and grow their wealth. Whether you are interested in buying, shipping, storing, seeking loans or selling gold and silver, our experienced team offers personalized strategies aligned with your wealth protection goals
Now more than ever, having the right partners is critical to navigating a complex and fast-changing world. With our global network and personalized service, you can invest with confidence, transparency, and security.
Final Thoughts
The surge in gold and silver prices following Trump’s tariff announcements is a clear reminder: Precious metals are a vital part of a smart, resilient investment strategy.
As political and economic uncertainties grow, gold and silver offer security, stability, and a proven track record of protecting wealth. At J. Rotbart & Co., we are committed to helping you safeguard your financial future with confidence.
Are you ready to strengthen your portfolio?
Contact our team today to discuss how gold and silver can play a key role in your long-term wealth strategy.
