Gold as a safe haven in uncertain times: How does it respond to trade wars?
25. 03. 2025In today’s turbulent world, where geopolitical tensions are escalating and trade wars are becoming a reality, investors are searching for a safe haven for their capital. Gold is one of the few assets that has retained its value for centuries.
What is a trade war?
A trade war occurs when one country raises tariffs on imports from another country. In response, the affected country retaliates with similar measures. This pushes up the prices of the goods involved and has a negative impact on businesses and consumers alike.
History shows that such measures have far-reaching consequences. For example, in 2018, US President Donald Trump imposed tariffs on steel and aluminium imports, with steel facing a 25% tariff and aluminium 10%. This decision had a major impact on global supply chains and provoked retaliatory action from America’s trade partners. Similarly, back in 2002, the George W. Bush administration introduced steel tariffs ranging from 8% to 30% in order to give domestic industry a boost.
As early as next month, the threat of higher tariffs could become a reality for us as well, as the US plans to impose higher tariffs on products imported from the European Union. Donald Trump signalled this move several weeks ago.
What are the repercussions of a trade war?
Trade wars inevitably affect all the countries involved. Tariff costs tend to be passed on to end consumers, making products more expensive and weakening economic growth. In these situations, investors seek alternative ways to protect the value of their assets. And that’s where gold comes into play.
Gold as a winner in times of uncertainty
Gold has kept to a long-term upward price trajectory, with its value soaring during periods of economic uncertainty. A recent example is its record-breaking rise above $3,000 per troy ounce as markets reacted to concerns over new tariffs in the US. Gold is viewed as a safe haven because its value is preserved even in times of crises and instability.
It is often said that a trade war has no winners, only losers. However, one thing is certain – gold remains a stable asset that safeguards wealth even in the most challenging times. Those who have invested in it can sleep soundly, knowing they hold a secure and valuable commodity.
Invest in gold and secure your future
In uncertain times, it is crucial to think about long-term financial protection. Investment gold offers stability and value growth, making it the ideal choice for anyone looking to safeguard their savings. If you want to be among those who profit from gold, don’t hesitate – start investing today.
