Key Issue: What should my technology company purchase during this period of trade wars?
Recommended Purchase
Historical Relationship Between Trade Wars and Precious Metals
The chart illustrates several important historical trends:
Smoot-Hawley Tariff Act (1930-1934): During this severe trade war, gold prices were initially fixed at $20.67/oz but rose to $35/oz after the US government revalued gold in 1934. Despite fixed official prices, market demand for physical gold increased significantly as investors sought safety from economic turmoil.
Chicken War (1960s): This more limited trade conflict between the US and European countries had a modest impact on precious metals, though silver prices did show some appreciation during this period.
Steel Tariffs (2002-2003): Gold prices increased by approximately 17% during this period, rising from around $310 to $363 per ounce, showing the metal's response to trade tensions even in sector-specific disputes.
US-China Trade War (2018-2020): This modern trade conflict demonstrated gold's safe-haven appeal, with prices climbing from approximately $1,268 to over $1,770 per ounce – a gain of nearly 40% from the beginning of the trade war to its peak impact.
Trump Tariffs 2.0 (2025): The most recent tariff announcements have coincided with gold reaching all-time highs above $2,900 per ounce, with silver also showing strong performance above $33 per ounce.
The data reveals that trade wars consistently create conditions favorable for precious metals appreciation, with greater effects visible in more recent conflicts when compared to the trade disputes of earlier eras when gold prices were partially controlled under various monetary systems.
Source: Fourester Research