Silver set to soar

Rumours are that Trump will put tariffs on gold and silver. But the real problem is a developing EFP crisis, similar to that seen post-covid. Silver stands to benefit more than gold.

Introduction

Bullion bank analysts will tell you that the threat of tariffs against Mexico (silver) and Canada (gold) is driving precautionary flows of bullion from London to Comex warehouses. This is evidenced by substantial premiums on Comex futures over spot prices in London, leading to large bullion shipments from London. But as this article demonstrates, this is a weak argument for what is actually happening: an acceleration of physical deliveries on Comex, highlighted by the potential consequences of Trump’s polices for the dollar and the entire fiat currency system.

Put another way, futures are being converted into bullion at a rate which is beginning to alarm the highly leveraged bullion bank community.

Because it has been left behind, silver appears to be a greater beneficiary from these developments than gold, at least in the short-term. We start by looking at silver’s technical position.