Written by: Steven Feldman, CEO Hard Assets Alliance
Whether you like President Trump’s policies or not, it is undeniable that they are contributing to economic and geopolitical uncertainty — two key factors that have historically driven demand for gold as a safe-haven asset. From tariff threats to sanctions and diplomatic confrontations, Trump’s approach to international relations has left nations around the world reassessing their economic dependencies and global alliances.
Take, for instance, the recent episode with Colombia. Trump threatened the country with tariffs and visa restrictions over its refusal to accept deported immigrants who were transferred in a military plane (note that Colombia had been long accepting deported immigrants who came by passenger planes). Colombia capitulated under the pressure.
While Trump achieved his immediate goal, the longer-term consequences may be more significant. Colombia is the top ally of the United States in Latin America, and cooperates on trade, combatting drug trafficking and managing immigration. Resentment over such ultimatums will push Colombia to continue to strengthen its ties with China. Not just regarding the exports of flowers and coffee (perhaps settled in yuan), but in strategic investment in infrastructure such as ports. Moves like this, repeated across various nations, pose a direct challenge to trade, security and the dollar’s global dominance.
Note that this trend is not new (the Biden administration used sanctions very liberally), but Trump’s frequent use of economic sanctions and tariff threats has accelerated it. Senior Treasury officials have long warned that the overuse of sanctions risks undermining their effectiveness, as nations work to establish financial systems beyond U.S. detection. When countries — particularly allies — are pushed to the brink with economic ultimatums, they are incentivized to reduce their dependence on the dollar and deepen their ties with other powers, most notably China. The erosion of dollar centrality is a boon for gold, which remains a globally recognized store of value unaffected by the political maneuvers of any one nation.
Trump’s combative approach has been applied broadly, targeting key allies and trading partners like Canada and Mexico, adversaries such as Russia, and smaller economies like Colombia and Denmark. This strategy reflects his belief that the United States has been unfairly exploited by other nations. However, the sheer volume of these demands—and the diverse range of issues they address—has placed the U.S. on a collision course with multiple countries simultaneously. Such global confrontations risk escalating unpredictably, potentially destabilizing both the U.S. and global economies.
On a recent trip to Spain, I witnessed firsthand how America’s current trajectory is perceived abroad. The average Spaniard is bewildered by the volatility and unpredictability of U.S. actions. The same sentiment is shared by Canadians, who I speak to regularly as part of our business. Many are openly rooting against American interests, reflecting a broader disillusionment with U.S. foreign policy. If allies like Canada and Spain harbor these sentiments, it is easy to imagine how countries with fewer shared interests — such as Colombia, Panama, or Denmark — feel even more frustrated. These nations may be actively seeking ways to insulate themselves from the ripple effects of U.S. economic and political unpredictability.
The geopolitical risks arising from these dynamics are far-reaching. Shifting trade relationships and currency diversification efforts threaten to fragment global supply chains and diminish the dollar’s influence. The more isolated the U.S. becomes, the greater the likelihood of economic dislocation, inflationary pressures, and systemic financial risks. In such an environment, gold serves as a hedge, offering stability and value when confidence in political and economic systems erodes.
For investors, the message is clear: geopolitical uncertainty is not a passing phase but an enduring reality. Diversification and risk mitigation strategies must account for these risks, and gold has historically been one of the most reliable defensive assets in times of uncertainty.
As we move forward, it will be critical to watch how nations respond to U.S. policies. Will countries like Colombia strengthen ties with China or seek alternatives to the dollar for trade settlements? Will allies continue to tolerate economic ultimatums, or will they pursue deeper economic integration with other global powers?
In a world where alliances are shifting and geopolitical risks are mounting, gold remains an essential anchor in turbulent times. Whether it’s trade disputes, diplomatic tensions, or monetary policy volatility, the case for gold as a safe-haven asset grows stronger with each passing day.
