The Trump administration is creating massive demand for gold, including coins stored in secure vaults. This is also creating a shortage of gold in the UK market, according to bullion market insiders.
With increasing difficulties in securing supply, premiums on physical gold are rising, adding even more urgency for investors looking to buy before prices escalate further.
However, while tariffs could push up prices for new buyers, existing investors stand to benefit from an increase in buy-back values, as market scarcity and higher premiums boost resale prices. Market experts have joined the gold bulls, with Goldman Sachs calling to ‘go long’ on gold amid the tariff uncertainty.
Wealth managers in Switzerland which The Armchair trader communicated with on Tuesday said they were also setting up for a possible silver bull market as well.
Josh Saul, CEO of The Pure Gold Company said:
“In an unprecedented rush, US investors have increased their purchases of UK gold and silver coins by 284%, fearing that tariffs could make these assets significantly more expensive in the coming weeks. If imposed, these tariffs will drive up premiums on UK-minted coins entering the US, raising costs for American buyers.”
Saul says he has not seen demand like this since the peak of the COVID crisis. There is real concern that supply constraints—especially with UK-minted gold coins — will drive prices up even faster. Investors are acting now to secure their positions before the market reacts to worsening trade tensions.
Uncertainty grows over which countries will be hit next
Adding to market anxiety is the uncertainty over which countries Trump may target next. With Europe, Australia, and Japan among potential candidates, investors fear a domino effect that could send markets spiralling.
“There’s no way to predict the full scale of Trump’s tariffs, nor which countries will be next,” said Saul. “But history tells us that trade wars escalate quickly. Clients are preparing for the worst—uncertainty breeds volatility, and gold thrives in volatility.”
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Markets are already reacting to fears of retaliatory tariffs from China, Canada, and Mexico, which could ignite a full-blown global trade war. If this happens, rising costs on essentials like food, fuel, and raw materials could worsen inflation, force central banks to delay or reverse rate cuts, and heighten economic instability. As confidence in equities wanes, many investors are shifting their capital into gold—historically a safe-haven asset during times of geopolitical and financial turmoil.
The growing unease means the gold market has also seen a record number of people looking to move their pensions (SIPPs) into physical gold bars. Many are preparing for long-term volatility in equities, opting to diversify their retirement savings into tangible assets that offer stability and security.”
Tax efficiency is also a factor in gold buying
With gold prices rising, investors are making their move — not just for safety, but also for tax efficiency. UK investors purchasing UK gold coins benefit from tax-free capital gains (depending on individual circumstances ), making them an increasingly attractive alternative to traditional financial assets.
“In times of economic uncertainty, people seek assets that offer liquidity, security, and stability,” added Saul. “Gold has historically been the ultimate hedge against inflation, geopolitical risk, and market crashes. With tariffs looming, supply tightening, and no clear end in sight, we’re seeing demand at levels comparable to the COVID crisis.”
“Trump’s trade tariffs are just the latest crisis to spur fresh record highs in the price of gold,” added BullionVault director of research Adrian Ash. “The precious metal has doubled or more for Western investors since the pandemic began five years ago. Rather than rushing for the exits above £2250 per ounce, investors as a group continue to take only a little profit net-net from gold. That leaves the bulk of their gold allocation rising in value as a hedge against the new risks and volatility which 2025 has already brought.”
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