Gold is a Safe Haven From Trumpenomics
Global financial markets have been rocked by the introduction of Trump’s “Liberation Day” tariffs, causing widespread disruption and uncertainty. As these tariffs have tanked $2.4 trillion in market value, investors scrambled to protect their assets, leading to a profit-taking gold sell-off. But gold is still the ultimate safe haven asset even as it sees a temporary tumble from investors cutting their losses, as evidenced by its new all-time highs.
Risk assets are tanking after hours as Trump’s tariffs are worse than expected. Dow futures are already down over 1,000, which is 2.5%. S&P futures are down 4%, and NASDAQ futures are down 4.5%. Bitcoin is only down 3.5%. Gold, however, the true safe haven, hit a new record high.
— Peter Schiff (@PeterSchiff) April 2, 2025
With markets panicking, Trump has backtracked on his tariff plan to a flat 10% tariff across the board, with a pause on reciprocal tariffs for all but China. Gold has held strong, only briefly dipping below $3,000. And as markets overreact (and react irrationally) to major news, economic realities eventually have their way. Gold, silver, and platinum remain exempt from the tariffs, positioning precious metals to weather the trade war storm as gold retakes all-time highs and beyond.
Gold is ripping. Last $3,157. We could hit $3,500 this month.
— Peter Schiff (@PeterSchiff) April 2, 2025
Investors reassessed positions in light of the tariff-induced volatility, with some taking profits from gold’s recent surge to new all-time highs. This profit-taking was a natural response to the uncertainty caused by the tariffs, which have targeted a range of goods and sparked retaliatory measures, particularly from China. But as the tariff back-and-forth continues, gold keeps its shine as a store of value during turbulence and uncertainty.
More of the shock of the tariffs has now worn off and profit-taking is all but finished for this round of Trumpenomics, causing gold to rocket upward again beyond its previous pre-trade war heights. Gold won’t stop being the go-to investment during times of policy uncertainty, as central banks buy gold and individual investors stack their own to safeguard their portfolios against unpredictable shocks. In spite of temporary panicked sell-offs, that hasn’t changed, and never will.
Major indices puked in the wake of Trump’s tariff announcement, bouncing back up when the concession was announced. But from bust to bounce in equities, gold’s role as a non-correlated asset becomes even more obvious. Unlike stocks or bonds, which are directly tied to economic performance and policy decisions, gold’s value as an independent global store of value makes it a multi-thousand year refuge for those looking to mitigate risk. Even as the gold profit-takers sold, the yellow metal held up much better than most of the market.
Gold vs. USD, 1-Month
If the Fed decides that QE is needed to stave off a recession, gold will rocket even higher as inflationary money printing devalues the dollar. Among massive spending and a black hole deficit, all roads lead to money printing. Gold provides a safe haven, but also a measuring stick. Forget about comparing the dollar to other manipulated fiat currencies like the Euro and Yen; gold shows the true value of the dollar and just how far it falls relative to real money. QE will make gold rocket upward to awe-inspiring highs.
The sell-off after Trump’s tariff announcement was a reflection of market-wide panic and profit-taking, not a fundamental shift in gold’s value proposition. With concessions announced and some degree of the initial chaos subsiding, investors reassess their strategies and come back to the same clear-headed conclusion: gold is the one true safe haven from tariffs, money printing, and other forms of economic and political chaos.
Exempt from tariffs either way, gold’s new all-time high is only a preview of what’s likely to come later this year. We have the setup for a 2025 financial crisis taking shape that could cripple the US economy, gold is the only lifeboat.
Receive SchiffGold’s key news stories in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!