Silver Hits New Euro Record as Trump Tariffs Whack EU, Mexico
Monday, 7/14/2025 15:27
GOLD spiked sharply on Monday and the price of silver hit a fresh record in Euro terms at London's midday auction after US President Trump put heavy new trade tariffs on America's top 2 importing partners, boosting demand for bullion and tightening physical supplies,
says Atsuko Whitehouse at BullionVault.
Platinum prices briefly topped $1400 for the fourth time in 3 weeks, while sister industrial precious metal palladium soared 3.5% to challenge its highest prices in 2 years before also easing back.
Gold meantime touched 3-week highs in all major currencies before erasing that jump, while silver broke new 14-year highs in US Dollars and UK Pounds after US President Donald Trump announced on Saturday a 30% tariff on imports from the European Union and from Mexico, effective 1st August.
The EU last year accounted for almost 1/5th of the USA's total imports of goods, with Mexico close behind, putting China in 3rd place.
No.1 silver mining nation Mexico is also the USA's largest source of imported silver − vital to chemicals production, electricals, solar energy plus many other
industrial silver uses − sending almost 3 times as much as Canada.
"It is clear that gold is no longer subject to tariffs, but the situation regarding other precious metals remains unclear," says Bruce Ikemizu of the Japan Bullion Market Association.
"As in the first half of the year, traders can profit by buying spot bullion in London and selling US futures contracts while tariffs are not in place, then transporting the metals to New York."
US silver Comex futures for September settlement on the CME derivatives exchange today peaked at $39.57 per Troy ounce, up 1.1% from last week's finish.
That offered an 'arbitrage' for buying bullion in London − which also set a new 14-year spot market high, peaking at $39.13 − and moving the metal to New York.
But
the NYLON gap in bullion silver had on Friday peaked at 90 cents per ounce, the widest 'arb' since Trump's 2nd April "Liberation Day" trade tariffs exempt precious metals, and a gap exploited by banks, brokers and other supply-side traders selling silver EFPs (exchange for physical contracts).
Following last week's
scramble for silver in London, the City's one-month lease rate for silver today rose to nearly 7% per annum, its highest since 7th February and far above its typical near-zero level, highlighting heightened market tightness.
Although both the EU and Mexico described the tariffs as unfair and disruptive, the EU has opted to delay its planned retaliation − tariffs on €21 billion of US exports to Europe effective on Tuesday − in hopes of reaching a negotiated solution.
"Big game changer," says precious metals strategist Nicky Shiels at Swiss bullion refining and finance group MKS Pamp of Trump's weekend announcement, contrasting it with last week's "
letters to small players.
"There's mild risk-off reaction but...'Trump fatigue' is settling in [equity markets], less so in metals / commodities where trade uncertainty remains a persistent grey swan risk after Trump lobbed tariffs on copper."
With a slew of corporate earnings reports due out this week, New York's broad S&P500 and Nasdaq tech-stock indices both opened Monday 0.2% lower, while both Mexico's BMV and the EuroStoxx 600 index dropped less than 0.3%.
US copper futures slipped again from last Tuesday's sudden record high, hit after Trump announced that 50% import tariff for 1st August.
Email us
