Experts say recent political decisions and government spending are fueling a surge in gold prices, which have reached new record highs.
On Monday, the Trump administration imposed tariffs on certain metals from Canada and Mexico, a move that experts say may be contributing to the rise in gold values. Larry Schneider, owner of Bismarck Gold and Silver Exchange since 1979, recalls a time when gold was priced at about $300 per ounce.
The newly introduced tariffs focus on aluminum and steel, which Schneider believes are aimed at boosting domestic production and creating jobs in the U.S. However, following President Trump’s election, Schneider noted a significant drop in gold prices—about $100—reflecting high investor confidence in the economy. More recently, however, as news of the tariffs spread, gold prices have climbed sharply, contributing to the current record-high prices.
While trade volatility is often cited as a factor by major news outlets, Schneider identifies other key drivers behind the surge. “I think it’s the government debt, the continuation of extreme debt, which is somewhere between reportedly $33-37 trillion,” he said. “This has had a major impact, particularly on foreign nations. They’re looking at the U.S.’s spending habits and deciding to convert some of their paper currency into gold and silver as a safer asset.”
Schneider added that gold’s historic ability to retain its value over time makes it an attractive alternative for investors seeking financial security.
Looking ahead, Schneider is optimistic about the future of precious metals. He predicts that both gold and silver will continue to rise in value, with silver potentially reaching the $50 mark and gold possibly hitting $3,000 in the near future.
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