The Gold Rush in the U.S.
Gold markets worldwide are experiencing unprecedented volatility as the United States ramps up its gold stockpile. In a shocking development, over 600 tons of gold have been moved to New York’s vaults since December 2023, breaking records and creating significant tremors across global gold markets. What sparked this massive shift, and what does it mean for the future of gold?
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America’s Growing Gold Appetite and Its Global Impact
The gold rush in the United States is drawing attention worldwide. According to the World Gold Council, nearly 600 tons of gold—equivalent to about 2 million ounces—have arrived at New York’s vaults since December 2023. Typically, such large quantities of gold are not stored in the city, but these are not typical times. Why has America suddenly become the center of global gold trading?
The Fear of Tariffs: A Catalyst for the Surge in Gold Imports
The root cause of this unexpected surge in gold imports stems from fears about impending tariffs. On February 1, 2025, President Donald Trump announced that a 25% tariff would be imposed on imports from Canada and Mexico, including gold. The prospect of such a tax has spurred American banks, investors, and traders to rush gold supplies into the U.S. before the tariffs take effect. This rush has prompted a shift in global gold supply chains, with nations around the world scrambling to meet American demand.
Could Other Countries Face the Same Gold Tariff Threat?
Experts warn that this is just the beginning. As the U.S. strengthens its gold reserves, countries like the U.K. and Switzerland—major gold suppliers—could also face similar tariffs in the future. This would create further disruptions in the global gold trade, driving up prices and causing uncertainty for traders.
How the U.S. is Pulling Gold from Around the World
The U.S. is sourcing gold from various countries, including Canada, Mexico, South Africa, Colombia, and Switzerland. Following Trump’s election, gold prices in the U.S. surged faster than in other countries, making it more profitable for traders to sell their gold to the U.S. This demand has strained gold supplies globally, especially as New York now has enough gold to meet U.S. demand for the next four years.
London’s Role as the Traditional Gold Hub Is Diminishing
Once considered the gold hub of the world, London is now seeing a dramatic decline in gold reserves. Traders have begun moving gold from London’s private vaults to New York, signaling a major shift in global gold storage. In January 2025, London’s gold reserves dropped for the third consecutive month, a clear indicator of the changing dynamics in the global gold market.
The Gold Bar Crisis: A Challenge for Refineries
As gold flows into the U.S., refineries around the world are facing a new challenge: America requires gold in 1-kilogram bars, unlike the 400-ounce bars common in London. This change is putting significant pressure on refineries to reformat their gold products for shipment to the U.S. This shift is creating additional bottlenecks in the global supply chain.
Record Gold Exports from Switzerland and Singapore to the U.S.
Switzerland has seen a significant uptick in gold exports to the U.S., sending the highest amount of gold in January 2025 in over 13 years. Similarly, Singapore has exceeded expectations, sending more gold to America than anticipated. These record shipments further illustrate the intense demand the U.S. is experiencing for gold.
Disruptions in the Global Gold Supply Chain
The unprecedented demand for gold from the U.S. has already started to disrupt the global gold supply chain. Traders are expressing concern that the sudden shift in gold flows could lead to imbalances in the market, potentially causing price fluctuations and delays in deliveries to other countries.
What If Trump Imposes a 100% Tariff on All Gold Imports?
Experts are increasingly concerned that if Trump decides to impose a 100% tariff on all gold imports, the effects could be catastrophic for global gold markets. While the U.S. may remain unaffected due to its ample stockpile, the rest of the world could see severe disruptions in both delivery timelines and prices. This fear is creating a sense of panic among investors and traders alike.
The Future of Global Gold Markets in Flux
The unprecedented demand for gold in the U.S., coupled with the looming threat of tariffs, is shaking the foundations of the global gold market. Countries like Switzerland, the U.K., and Singapore are feeling the strain as gold flows into America, and traders worldwide are on edge. With uncertainty in the air and record-breaking gold imports continuing, the global gold market could face a major shift in the coming months. Investors and traders must brace for potential market volatility as the gold crisis unfolds.
As the world watches, one thing is clear: America’s insatiable hunger for gold has set the stage for a new global gold market.
