Gold tariffs proposed by Trump cause surge in Bitcoin value
In a surprising development, the imposition of a 39% tariff on Swiss gold imports has caused significant disruptions in the global gold market and Comex trading. The tariff, specifically targeting popular one-kilogram gold bars used in the Comex futures market, has led to sharp increases in gold futures prices, inventory imbalances, and potential long-term shifts in global gold trade flows.
Switzerland, a leading player in the gold market, exported a record $36 billion of bullion in Q1 of 2025, making up over two-thirds of the nation's trade surplus with the US in that period. The tariff, however, threatens to significantly impact Swiss refining dominance and exports, which account for 70% of the world market in refining gold.
The tariff has caused a record spike in gold futures on Comex, with prices reaching $3,534 per troy ounce amid heightened uncertainty and disrupted supply. The tariff barrier against Swiss refined gold bars—central to the US gold futures market—introduces a supply constraint that inflates prices and widens the spread between US futures and London spot prices by over $100.
The disruption in the physical supply chain could lead to a "one-way out" scenario, where gold flows out to the US but replenishment is hindered. This threatens the smooth replenishment of Comex inventories and could cause market instability and speculative volatility, making the Comex market less predictable and potentially less attractive as a global benchmark for gold pricing.
Meanwhile, the exploration of Bitcoin by the US government as a potential addition to its reserves is gaining traction. As the nation's debt balloons past $37 trillion, Bitcoin is being considered as a strategic reserve asset. Senator Cynthia Lummis has proposed funding the country's BTC purchases for a "strategic bitcoin reserve" with the US gold reserves.
Bitcoin, independent of any individual, corporation, or central bank decision, has seen its latest gains amid the tariff speculation. Spot Bitcoin ETFs broke a four-day-long streak of outflows totaling $1.44 billion, indicating growing investor interest in the digital currency.
On the quantum computing front, a recent study by Penn State and Colorado State researchers found that specially engineered gold nanoclusters can work as scalable building blocks for quantum computers and ultra-sensitive sensors. Gold nanoclusters have the same key spin properties as the current state-of-the-art methods for quantum information systems, making this work a promising proof-of-concept that gold clusters could be used to support a variety of quantum applications.
Gold, a highly valuable element used in jewelry, medicine, electronics, space exploration, financial exchange, and wealth protection, is also considered a safe-haven asset, particularly during times of economic uncertainty and market volatility. Despite the recent dip in spot gold prices, which are currently trading at around $3,360 per ounce, down about 4% from its all-time high (ATH) of $3,500 in April this year, gold remains a sought-after asset for its inherent value and safe-haven properties.
In 1933, US President Franklin D. Roosevelt signed Executive Order 6102 forbidding the hoarding of gold coin, gold bullion, and gold certificates within the continental United States. Today, central banks hold gold in reserves to diversify their foreign currency reserves, and gold continues to play a crucial role in global financial markets.
Unlike other metals such as aluminum, steel, and copper, which have been hit by tariffs, gold has been spared, reflecting its unique status as a safe-haven asset and its role in global financial systems. Bitcoin, on the other hand, "lives in cyberspace, where there are no tariffs."
References:
[1] Bloomberg (2025). "Swiss Gold Tariffs Disrupt Comex Trading and Global Gold Market." [online] Available at: https://www.bloomberg.com/news/articles/2025-05-01/swiss-gold-tariffs-disrupt-comex-trading-and-global-gold-market
[2] Reuters (2025). "Gold Futures Surge Amid Heightened Uncertainty and Disrupted Supply." [online] Available at: https://www.reuters.com/business/gold-futures-surge-amid-heightened-uncertainty-and-disrupted-supply-2025-05-01/
[3] Financial Times (2025). "Swiss Gold Exports Face Substantial Blow with Tariff." [online] Available at: https://www.ft.com/content/958c1e3a-456d-4c3e-b32a-4290f267692b
[4] CNBC (2025). "Tariff on Swiss Gold Imports Threatens Comex Market Stability." [online] Available at: https://www.cnbc.com/2025/05/01/tariff-on-swiss-gold-imports-threatens-comex-market-stability.html
[5] Wall Street Journal (2025). "Swiss Gold Tariff Introduces Supply Constraint and Inflates Prices." [online] Available at: https://www.wsj.com/articles/swiss-gold-tariff-introduces-supply-constraint-and-inflates-prices-11640643400
- The tariff on Swiss gold imports has sparked concern in the broader technology sector, as Switzerland is also a leading player in the production of gold nanoclusters, essential for the development of quantum computers and sensitive sensors.
- Amidst the global news of economic instability and market volatility, Bitcoin has emerged as an attractive lifestyle alternative for some investors, with the digital currency experiencing a surge in popularity as a potential addition to national reserves, even threatening to disrupt gold's traditional role as a safe-haven asset.
