Keep stacking: Trump’s tariff threats are destabilizing silver markets, gold will rally again in H2 2025 – TD Securities’ Ghali
Keep on stacking. Add on the knock downs
(Kitco News) – Gold will rally in the second half of the year as the Fed resumes its rate cuts, but the real story right now is the massive impact that President-elect Donald Trump’s tariff threats are having on global silver stocks, according to TD Securities’ Senior Commodity Strategist Daniel Ghali.
In a Jan. 7 interview, Ghali said that investors need to take notice of an unprecedented situation that’s unfolding in the silver market right now.
“It's hard to see it in flat prices, but over the last month there's been a huge disruption in precious metals markets where the threat of universal tariffs on metals is leading traders around the world to bring metal in from London and other global venues into the U.S., only to hedge against the risk that tariffs will be implemented on precious metals,” he said. “Historically they haven't – precious metals have been considered money in effect – but if they were to be subject to tariffs, then traders holding short positions against metal that they actually hold somewhere else in the world would be subject to substantial losses.”
“In order to hedge against that risk, they're bringing metal into the U.S.”
Ghali clarified that he’s not talking about contracts or other financial instruments, but actual, physical metal that is being brought en masse into the United States, and the implications are profound.
“This could inadvertently lead to a stock-out in the world's largest metal vaulting system for silver in London,” he said. “This is the biggest story in commodity markets right now. Silver markets seem to be just completely sleepwalking into a potential stock-out.”