Trump’s Tariffs Could Send Precious Metals Soaring—But Not for the Reason You Think
Trump’s latest tariff threats—potentially as high as 25% on Canadian and Mexican imports—have the financial world buzzing. Commodity markets are already rattled, and analysts are scrambling to predict the fallout. Some fear supply chain disruptions in metals like copper and zinc. Others worry about rising costs in energy markets. But here’s the real story the mainstream isn’t telling you: tariffs are just another mechanism for inflation, and inflation is fuel for gold and silver prices.
According to Bart Melek, global head of commodity strategy at TD Securities, the biggest impact won’t be supply shortages of gold and silver—it’ll be the inflationary pressure caused by broad-based tariffs. “If we do see these broad tariffs against commodities, against manufactured goods, ultimately I equate them to a negative supply shock,” Melek explained. “In essence, aggregate prices take a lift almost immediately.” Translation? Higher prices across the board, eroded purchasing power, and a massive tailwind for monetary metals.
The Inflationary Firestorm Ahead
Tariffs function as hidden taxes on consumers. When the U.S. slaps import duties on key commodities, businesses pass the cost to customers, leading to price hikes across the economy. But what happens next? If the Federal Reserve reacts by cutting rates to “stimulate” the economy in response to the higher prices and possible economic slowdown, they’ll be pouring gasoline on the inflationary fire.
Melek warns that if the Fed accommodates the inflation caused by tariffs instead of fighting it, we could be looking at a repeat of the 1970s—a decade plagued by stagflation, soaring gold prices, and a collapse in consumer confidence. The last time the U.S. faced a severe supply shock and an accommodative central bank, gold went from $35 an ounce in 1971 to $850 by 1980. That’s a 2,300% gain in under a decade.
With today’s fiat currency already on life support, the situation could escalate even faster. If Trump’s tariffs materialize, and inflation takes hold while the Fed stays dovish, gold and silver will become the go-to safe haven for anyone looking to protect their wealth.
Energy Markets and the Hidden Consequences
It’s not just metals feeling the heat. Canada supplies the U.S. with about 4.5 million barrels of crude oil per day, most of it heavy crude required for refining into gasoline and industrial products. Melek notes that this supply can’t be easily replaced. Venezuela? A failed state. Saudi Arabia? Not a reliable partner. The U.S. could find itself paying a premium for energy, compounding the inflationary effects.
What does that mean for gold and silver? More inflation. More demand for hard assets. More upward pressure on prices.
Prepare Before It’s Too Late
If tariffs hit, prices will rise, and purchasing power will shrink. Governments and central banks won’t step in to fix the problem—they’ll make it worse. Smart investors are already moving into tangible assets, securing their wealth before the next wave of monetary manipulation begins.
Take action now: Download Bill Brocius’ free guide, “7 Steps to Protect Your Account from Bank Failure,” and ensure your money is outside the system before the next crisis unfolds. Don’t wait for the headlines to tell you it’s too late.
