A year ago, the notion of silver reaching triple-digit prices seemed far-fetched, but it has now become a burgeoning reality. In 2025, Trump stirred markets with tariffs, and not much has changed as the new year rolls in. As we warned on Sunday, exactly as predicted, cryptocurrencies fell while assets such as silver and gold surged in value.
Trump’s Economic Maneuvers
Trump envisions a world where everything he desires comes to fruition, believing that the political, military, and economic power of the United States will enable this. Global organizations established after World War II, including NATO, now seem obsolete. Today, Donald Trump shared a new map portraying Venezuela and Greenland within U.S. borders. Which country is next on his list? Could it be Mexico, Colombia, or Ukraine?
Amid ongoing tensions between the United States and Europe over control of Greenland, no signs of easing are observed, while heavy selling in Japanese bonds negatively impacted global bond markets.
The S&P 500 futures fell by 1.4% compared to Friday’s close, wiping out the gains achieved since the beginning of the year. European stocks dropped by 1.3%, with the Stoxx 600 compounding losses following its worst day in two months.
Precious Metals and Global Trade Tensions
No signs of agreement are visible, and a large-scale trade conflict with America’s closest allies looms. After French President Emmanuel Macron refused to join Trump’s U.S.-led peace initiative, Trump proposed a 200% tariff on imports of champagne from France. He further mocked Macron by sharing a message sent by the French president himself.
The 30-year U.S. interest rate rose by 9 basis points to 4.93%. Tensions are high, with Japan’s 40-year rate hitting a new peak. Naturally, this environment benefited the gold and silver markets.
As silver approaches a triple-digit price, gold surpassed $4,700 per ounce for the first time. The dollar index declined by half a point, while the Swiss franc recorded its largest two-day rise since April.
If tensions continue to escalate and the Supreme Court does not announce an annulment request for tariffs today, silver might surpass $100 in the near future. Having increased by 227% in nearly a year, silver is amid an unprecedented rally.