Canadians are increasingly buying gold amid trade tensions

Canadians are increasingly buying gold as a way to protect their investments amid economic worries fueled by trade tensions. Precious metal dealers are reporting a noticeable rise in demand for gold, similar to what was seen at the start of the COVID-19 pandemic. Tyler Whitmore, CEO of Canada Gold, explained that his company is now placing double the usual orders for gold bars and coins due to high demand. He noted that customers are concerned about the Canadian dollar and potential recession, leading them to seek out safe assets like gold and silver. Sales at Sprott Money, a Toronto gold dealer, have also jumped by about 25% compared to last year. President Larisa Sprott attributed the increase to market fear linked to political factors, especially after Donald Trump's election. Many customers prefer to hold physical gold as a security measure against financial instability. The demand is not limited to substantial quantities, either. People are opting to buy smaller amounts of gold as prices reach record highs. Currently, an ounce of gold is priced around $4,400, which makes it less accessible for some investors. Analysts suggest that gold prices may remain high due to ongoing trade uncertainties and the potential decline of the Canadian dollar. Institutional buyers are also contributing to the surge, driven by their own concerns about inflation and tariffs. Overall, both small investors and larger entities are turning to gold as a hedge against economic instability, reflecting a broader trend of seeking safe havens during times of uncertainty.