Canadian investors are seeking to protect their assets by investing in gold and shares of companies producing goods with limited substitutes (such as uranium) amid the growing threat of a trade war. They are also trying to take advantage of the weakening Canadian dollar and expected market fluctuations, Reuters reports.
The rise in global market uncertainty is forcing investors to look for reliable ways to preserve capital, and gold has traditionally been one of those instruments. In recent weeks, demand for precious metals has increased, driven not only by potential economic disruptions but also by overall instability in international trade.
In March, the announced 25% tariffs by Trump on most goods from Canada are expected to take effect, with even harsher tariffs possibly being imposed on steel and aluminum. This could significantly reduce the competitiveness of Canadian manufacturers and disrupt the supply of key goods to the U.S. market. Given that 75% of Canada’s exports go to the United States, such restrictions pose a serious threat to the country’s economy, the portal notes. The introduction of tariffs could also lead to mass layoffs at major export-dependent enterprises, which in turn would pressure consumer spending and the financial sector.
According to Greg Taylor, a portfolio manager at Purpose Investments, uncertainty in trade and geopolitical tensions have once again made gold one of the key assets. He added that his company is increasing investments in precious metals, seeing them not only as a risk-hedging tool but also as a means of ensuring stable returns.
Experts note that the rising interest in gold is not only among institutional investors but also among private investors looking to safeguard their savings. As a result, gold prices may continue to rise in the coming months, especially if the situation with trade restrictions worsens.
Additionally, Canadian investors are considering other assets seen as “safe havens” during crises. Besides gold, there is a growing interest in government bonds and investments in commodities, which may remain stable even amid changes in trade policies.
Some analysts believe that if a trade war truly unfolds, it could lead to a large-scale redistribution of capital in financial markets. Canadian funds are already adjusting their portfolios in response to new risks, reducing investments in vulnerable sectors and increasing holdings of defensive assets.
Given the current situation, experts recommend that investors closely monitor developments, as any new statements from the U.S. could significantly impact stock prices and investment strategies.
