Gold as a safe haven in uncertain times: How does it respond to trade wars?
25. 03. 2025In today's busy world, where geopolitical tensions are rising and trade wars are becoming a reality, investors seek safe havens for their capital. One of the few assets that has maintained its value over centuries is gold.
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 its own tariffs. The result is an increase in the prices of the affected goods, negatively impacting businesses and consumers alike.
History shows that such measures have far-reaching consequences. For example, former U.S. President Donald Trump imposed tariffs on steel and aluminum imports in 2018, setting tariffs at 25% for steel and 10% for aluminum. This decision had a major impact on global supply chains and triggered retaliatory measures from US trading partners. Similarly, in 2002, George W. Bush's administration introduced tariffs on steel ranging from 8% to 30% to support the domestic industry.
From the beginning of next month, the threat of higher tariffs may once again become a reality. The United States is expected to introduce increased tariffs on products imported from the European Union - a move that Donald Trump announced weeks ago.
What are the consequences of a trade war?
The impact of trade wars is unavoidable for all involved countries. The cost of tariffs is mostly passed on to consumers, leading to higher product prices and weakened economic growth. In such situations, investors look for alternatives to protect their wealth - this is where gold comes into play.
Gold as a winner in uncertainty
The price of gold has a long-term upward trend, with its value rising sharply during periods of economic uncertainty. A recent example is its record rise above $3,000 per troy ounce as markets reacted to fears of new U.S. tariffs. Gold is considered a safe-haven asset because it retains its value even during crises and instability.
It is often said, that trade wars have no winners - only losers. However, one thing is certain: Gold remains a stable asset that protects wealth even in the toughest times. Those who have invested in it can rest easy, knowing they hold a secure and valuable commodity.
Invest in gold and secure your future
In uncertain times, it is essential to think about long-term financial protection. Investment gold offers stability and value appreciation, making it an ideal solution for anyone looking to evaluate their savings. If you want to be among those who benefit from gold, don't hesitate - start investing today.
