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Talk of tariffs has been dominating the news cycle recently. Potential tariffs will affect the cost of imports, but their effects on investments are less obvious. What is the relationship between tariffs and gold, for instance? Here’s what we know so far.
First off, bullion is specifically excluded from the most recent tariff announcements. This means that imported gold bullion will not face actual tariffs.
“Bullion” generally refers to coins, bars and ingots of gold, silver, platinum and palladium. While we don’t have all the details yet, it’s likely that all bullion products will be exempt from direct tariffs.
Tariff announcements have made equity and bond markets quite volatile, with traders attempting to price in the economic impacts of these policies. With uncertainty often comes increased interest in “safe-haven” assets like precious metals. We’ve seen this lately, with gold setting multiple new all-time highs in the last few weeks alone.
The value of the US dollar has weakened in recent months as investors diversify holdings and shift assets out of US treasuries. Gold prices generally benefit from a weaker US dollar, as gold is priced in dollars. As the dollar loses purchasing power, gold’s price in US dollars rises.
Central banks have been steadily increasing gold purchases since 2022, but recent policies out of Washington have spurred even more buying. Some experts are suggesting that 2025 may have the highest-ever gold demand from central banks. This is a significant catalyst for gold prices, given that central banks already represent about 23% of global gold demand.
When demand spikes, mints and retailers sometimes have trouble keeping physical gold in stock for purchase. 2025 has already seen significant shortages in Asia and Europe, though we haven’t seen much in the United States yet.
There’s a lot of uncertainty swirling and we simply don’t know how these policies will settle long-term. Right now, there are a lot of positive catalysts for the price of gold, but it’s impossible to know if that will continue or not. If markets get more clarity on policies moving forward, investors may begin to shift back more into risk assets like equities, which could hurt gold demand. The relationship between gold and tariffs is complex, and a lot could change in the coming months. Time will tell.
Whether you’re buying or selling gold these days, it’s important to work with a trusted partner to get the best deals. In the Seattle area, we hope you’ll choose Bellevue Rare Coins for your gold needs. We’ve been a Northwest staple for more than 40 years and have helped thousands of people buy, sell and trade precious metals. Get in touch today or stop by one of our stores (Bellevue, Tacoma, Lynnwood or Issaquah).
