I hope that you are having a nice winter and staying warm, safe and secure.
On February 4th, 2025, it is expected that trade tensions between Canada and the U.S. will make life more expensive. When the U.S. imposes tariffs—extra taxes on Canadian goods—it raises prices for businesses, which often pass those costs on to us. This can make everyday items more expensive, weaken the Canadian dollar, and create economic uncertainty. While we can’t control government policies and the weakness in our politicians, we can take steps to protect our finances and family. One smart way to do this is by owning physical precious metals.
What Could Get More Expensive?
When the U.S. places tariffs on Canadian goods, or if/when Canada retaliates with its own tariffs, we should expect to see price increases in:
Groceries – Many fruits, vegetables, and packaged foods are imported from the U.S. If tariffs increase costs, grocery prices could rise even higher than they already have.
Gasoline – Canada imports a significant amount of refined oil from the U.S. If trade tensions disrupt this supply, fuel prices at the pump could climb.
Cars & Auto Parts – If tariffs hit the automotive sector, the cost of buying a new or used vehicle—and even basic repairs—could go up.
Electronics & Appliances – Many consumer goods, from smartphones to refrigerators, are either made in the U.S. or contain American-made parts. Tariffs could make these items more expensive.
How Gold and Silver Can Help?
Gold and silver have been used for centuries as a way to protect wealth. Unlike fiat dollars which can lose value when prices rise, precious metals have held their worth over time. In fact in 2024, gold (+27%) outperformed the S&P500 index (+25%), and silver was up +21%. Here’s how they can help when tariffs impact everyday costs:
Offset a Falling Canadian Dollar - If tariffs hurt our economy, the Canadian dollar will likely lose further value. When that happens, gold and silver—priced in U.S. dollars—often rise in Canadian dollar terms, helping to preserve and boost your purchasing power.
Protect Against Inflation - If grocery, fuel, and product prices increase due to tariffs, our fiat dollars won’t go as far. Historically, gold and silver have kept pace with inflation, meaning they can help maintain your financial stability when prices go up and reduce the overall impact.
A Reliable Store of Value - Unlike stocks, which can be unpredictable during trade disputes, gold and silver are considered safe-haven assets. Many investors turn to them during economic uncertainty, which can drive their value higher.
My Final Thoughts
If/when tariffs make everyday life even more expensive, owning some physical gold and silver can be a smart way to protect your finances. Whether it’s shielding your hard-earned savings from inflation, hedging against a weaker Canadian dollar, or simply having an asset that holds its value, over time, physical precious metals provide a financial safety net in uncertain times.
If you’re new to precious metals, now is a great time to learn how they can help you stay ahead—no matter what’s happening with trade policies.
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