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Gold Hit By Surprise US Tariffs, Unleashing New Turmoil

Is there *anything* this clown won't touch? I also wonder if this will encourage countries to continue, if not expand, their withdrawl of bullion from the NYC vaults out of concerns over soverignty and what is rightfully their property.


(Bloomberg) -- A Trump administration ruling that gold bars will be subject to tariffs stunned traders who had assumed they would be exempted, throwing bullion markets into turmoil.

Futures in New York, which are backed by bars shipped from Switzerland and other key trading and refining hubs, surged to a record.

Traders, analysts and executives across the industry had understood the bars would be exempt from reciprocal tariffs enacted by President Donald Trump, such as a 39% levy on Swiss goods. But when a gold refiner in Switzerland asked about it, US Customs and Border Protection clarified that one-kilogram and 100-ounce gold bars are subject to the levies, according to a letter from the agency.

The decision, if it remains in place, has sweeping implications for the flow of bullion around the world, and potentially for the smooth functioning of the US futures contract. Gold’s role as a financial asset and global currency sets it apart from other commodities like copper that have been roiled by tariffs, and traders said on Friday that shipments had largely frozen up in response to the shock news.

“In the long run, the existence of US tariffs on deliverable gold products raises the question on the role of futures trading in the US,” said Joni Teves, a strategist at UBS AG. “Until there is clarity, we expect the gold market and precious metals markets more generally to remain very nervous.”

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https://finance.yahoo.com/news/us-adds-surprise-gold-bar-045737320.html

Comments

  • Tariffs will apply to gold shipments of large sizes - 100 troy oz and 1 kilo (32,150.75 troy oz) gold bars.

    There is another complication in global trading of gold. Standard sizes vary by locations (NYC, London, Dubai, China, Switzerland), so it isn't just a matter of shipping gold from place A to place B. Gold at place A may have to be melted & recast into sizes acceptable at place B. To all those costs, add tariffs.

    Some gold is stored in vaults around the world & can be debited or credited without any physical movement.
  • No one man should have this much unchecked power.
  • edited August 8
    Anna said:

    No one man should have this much unchecked power.

    You are absolutely correct.
    Unfortunately, many so-called "patriots" just don't seem to care about democratic principles.
  • "Unfortunately, many other "patriots" just don't seem to care about democratic principles." As exemplified by @FD1000, for example.
  • edited August 8
    There is a White House clarification (re gold tariffs) in the process of being issued. So don’t do anything rash!
  • hank said:

    There is a White House clarification (re gold tariffs) in the process of being issued. So don’t do anything rash!

    Oh no! I was just driving to a dozen Costcos to pick up my bars…
  • equalizer said:

    hank said:

    There is a White House clarification (re gold tariffs) in the process of being issued. So don’t do anything rash!

    Oh no! I was just driving to a dozen Costcos to pick up my bars…
    Hope you have a big enough pickup to haul it all.:)

  • edited August 8
    hank said:

    There is a White House clarification (re gold tariffs) in the process of being issued.
    So don’t do anything rash!

    Don't worry at all!
    The gold tariff is an incredibly thoughtful policy created by one of the smartest people on the planet.
    It just needs to be tweaked since markets were getting a bit "yippy."
    The administration will soon clarify all the "misinformation" reported by the mainstream media.
  • Speaking of Costco, I guess now the tomatoes from Mexico, the beef and orange juice from Brazil, and now gold are all a lot more expensive. Jeeeze!
  • Per BBG:

    The White House intends to post an executive order in the near future to clarify what an official called misinformation about the tariffing of gold and other specialty products. The official detailed the plans Friday on condition of anonymity.

    That's not 'misinformation', you doofus, it's self-inflicted confusion caused by your own economic geniuses who don't understand anything. Moreover, it should not require a formal 'executive order' to clarify things -- unless the Tariff Toddler wants another photo op because it would deal with his favorite thing: GOLD. *grumble*
  • edited August 8
    “Who’s on first?” / Where’s Epstein?
  • hank said:

    equalizer said:

    hank said:

    There is a White House clarification (re gold tariffs) in the process of being issued. So don’t do anything rash!

    Oh no! I was just driving to a dozen Costcos to pick up my bars…
    Hope you have a big enough pickup to haul it all.:)

    Unfortunately my wallet can’t handle more than a few 1 ounce “bars”.
  • hank said:

    “Who’s on first?” / Where’s Epstein?

    Nailed it.
  • @equalizer- I had to read that twice. The first time I thought that you said "Unfortunately my wallet can’t handle more than a few 1 ounce “beers”.
  • From what I can see, Swiss checked with US Customs and were told about tariffs on 100 oz and 1 kilo gold bars/bricks and that wasn't even related to 39% tariff on Switzerland. Swiss were concerned and posted this info. A mini panic ensued in the gold market. White House said that this was misinformation and it will post a clarification, but nothing related has been posted so far at Whitehouse.gov.

    May be if the mini panic has passed, nothing will be posted by WH and some new guidance may be provided just to US Customs.
  • edited August 9
    Bill Fleckenstein is a virtual encyclopedia on the precious metals and miners. I’d be much wealthier had I followed 100% of his advice going back about 5 years. From yesterday’s ”Daily Rap” (8/09/2025):

    ”… these tariffs won't impact demand or the spot gold price much. However, they do cause a problem for folks who arbitrage between London Gold and Comex Gold, because Comex Gold requires 100-ounce bars for settlement, which is what comes out of Switzerland and has now been sanctioned to the tune of 39%. Meanwhile, London gold has 400-ounce bars … what this has done is thrown a monkey wrench into the plumbing of gold … ”

    Excerpt from: Daily Rap (Fleckenstein Capital LLC). This is a subscription based service. Link takes you to the site one year ago. You’d need to “pay-up” to read current commentaries.
  • Hank,

    Miss the Contrarian Chronicles from 20 years back on MSN Money.

    “It became a must-read for investors burned by the dot-com bubble and wary of Wall Street's pervasive optimism. The column stood as a stark, often witty, counterpoint to the prevailing market narratives of its time”.

    Need the Chronicles today!
  • edited August 10
    equalizer said:

    Hank,

    Miss the Contrarian Chronicles from 20 years back on MSN Money.

    “It became a must-read for investors burned by the dot-com bubble and wary of Wall Street's pervasive optimism. The column stood as a stark, often witty, counterpoint to the prevailing market narratives of its time”.

    Need the Chronicles today!

    I started reading Fleck’s commentaries online in the mid 90’s. They were free then - I believe on a site hosted by Jim Cramer - but might be wrong. They saved me some money as they led me to lighten up before the .com crash. This informational link appears quite dated. I missed Bill’s spirited market take for many years, but dug a little deeper and pulled up his $100+ yearly site 7-8 years ago.

    Not sure how well being a contrarian works in today’s heady markets. Bill was correct on gold 5-10 years ago when few saw the worth. But his persistent bearishness on the broader equity market hasn’t worked over the same period. You’d have made a lot of money on gold but forfeited a lot of the gain in equities had you followed him over the past decade.

    The problem being contrarian is expressed pretty well in the old cliche: “Markets can remain irrational longer than you can remain solvent.”
  • edited August 10
    hank said:



    The problem being contrarian is expressed pretty well in the old cliche: “Markets can remain irrational longer than you can remain solvent.”

    Agreed. Frankly I find the best contrarian play if I'm feeling bearishly contrarian is to raise cash versus trying to guesstimate my positioning for when the tides *might* turn. At least then I can usually remain solvent. :) Plus, at least for me, buying is always easier than selling during periods of volatility or major swoons.

  • edited August 10
    Somewhat related. From an interview with Jack Ablin, chief investment strategist of Cresset in this week’s Barron’s:

    “Ablin considers the S&P 500 index about 27% overvalued today, based on the divergence between corporate earnings and dividend growth and S&P 500 returns over time. But (he says) that doesn’t mean stocks can’t keep climbing … ”

    Isn’t that like saying, “I know I’m already drunk, but I don’t think another drink will hurt any …..” ?

    Article: ”There’s $7 Trillion in Money-Market Funds. That’s Bullish for Stocks, Says This Investment Pro.” Published in Barron’s - August 11, 2025
  • edited 1:57AM
    There are no executive orders regarding gold tariffs listed on the whitehouse.gov website as of this evening.
    But President Trump did post the following concise statement on Truth Social.

    @realDonaldTrump 12h
    A Statement from Donald J. Trump, President of the United States of America:
    Gold will not be Tariffed!
  • Executive Order (EO) to clarify gold tariffs or non-tariffs was first mentioned on Thursday LAST week, but the WH website showed no such EO/post on Friday, weekend, Monday, Tuesday (so far). But the matter is important enough for President to personally post on its twice - that it's coming.

    BTW, there has been a flurry of WH postings since Thursday on Azerbaijan-Armenian, DC, China, alternatives in DC plans, but where is the info on gold? May be the EO machine can't run fast enough.
    https://www.whitehouse.gov/news/
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