Trade tariff headlines have been making waves again. Over recent months, announcements from some of the world’s largest economies have unsettled global markets, sent currencies swinging, and pushed gold above $3,300 per troy ounce. For UK investors, the obvious question is whether this turbulence could be the moment to add physical bullion to a portfolio. In this article, we look at how tariffs affect gold, why physical bullion stands out during periods of uncertainty, and what practical steps you can take to make the most of the current climate.
How Trade Tariffs Influence Gold Prices
Trade tariffs create ripples that quickly turn into waves in the financial markets. They can knock investor confidence, slow global trade, and put pressure on national currencies. When confidence falls, investors naturally start looking for somewhere safer to park their money, and gold has historically been that safe harbour.
In the UK, the impact can be felt directly through the pound’s exchange rate. If tariffs hurt our trading partners or add to our own import costs, sterling can weaken, making gold more expensive in GBP terms. Tariffs also tend to increase the price of imported goods, feeding into inflation – another factor that pushes investors toward gold as a proven store of value.
Recent Tariff Developments and Gold’s Reaction
The trade tensions between the US and China have flared up again, with both sides announcing new tariffs. This has sparked concern about a longer, more entrenched trade dispute. The fallout isn’t confined to those two countries – supply chains across Europe and beyond have felt the impact, increasing costs and uncertainty.
Gold has reacted in the way it often does during unsettled times – by moving higher. Each fresh tariff announcement has been followed by a jump in gold prices, as investors seek something tangible and secure. For UK buyers, these price movements underline gold’s role as both a hedge and a safe-haven asset.
Why Physical Gold and Silver Deserve a Place
In volatile times, there’s a real difference between owning gold on paper and holding it in your hands. Physical bullion – whether in the form of coins or bars – carries no counterparty risk. It isn’t reliant on a financial institution’s stability, and it has an intrinsic value that’s recognised worldwide.
For UK investors, there’s another advantage: certain coins, such as Gold Britannias and Sovereigns, are exempt from Capital Gains Tax. That means any profit you make when you sell them is yours to keep, without a slice going to HMRC. Combine that with the flexibility and liquidity of well-recognised coins and LBMA-approved bars, and it’s easy to see why physical bullion remains a go-to option when markets are jumpy.
Making the Most of Market Volatility
High prices can sometimes make buyers hesitant, but volatility also brings opportunity. Gold prices rarely move in a straight line – even in a strong market, there are often small pullbacks. For patient buyers, these dips can be the perfect moment to act.
Choosing the right products matters. In a climate like this, stick to formats that are easy to sell on, such as 1oz Britannia coins or 100g and 1oz bars from recognised refiners. And remember, gold and silver work best as part of a balanced approach – most investors find that holding between 5% and 15% of their portfolio in precious metals provides stability without sacrificing growth potential elsewhere.
UK Considerations
Here in the UK, the impact of global trade tensions can be amplified by our own currency’s movements. Sharp swings in sterling can mean that local gold prices rise even when the international price is steady. Import costs and premiums can also shift quickly if supply chains are disrupted.
This is why many of our clients at Solomon Global choose CGT-free UK legal tender coins – they offer tax efficiency and a straightforward route to selling, whatever the wider market is doing.
Conclusion
Tariffs and uncertainty are nothing new, but they’re a reminder of why it pays to have part of your wealth in something solid. Physical gold and silver have been trusted for centuries to protect value through turbulent times. By focusing on quality, tax efficiency, and the long-term view, you can navigate the current climate with confidence.
Call to Action: Looking to secure your wealth with physical gold or silver during volatile times? Contact Solomon Global or download our free investment guide to get started today.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results. We recommend seeking independent legal, tax, or financial advice before making investment decisions.
