Could the China Trade Spat adversely affect Gold & Silver Prices?

Could the China Trade Spat adversely affect Gold & Silver Prices?

Welcome to illuminati silver, we tell you
the truth about silver. Today is Sunday 26th August 2018 and we are
very briefly covering the response by China against American Tariff’s and asking the
question Could the China Trade Spat adversely affect Gold & Silver Prices?
But first some background. President Trump has, as the basis of his economic policy,
promised the American people that he will address the balance of payments deficit, or
as is often described as the Trade Deficit. In 2017, the total U.S. trade deficit was
$566 billion. It imported $2.895 trillion worth of goods and services while exporting
$2.329 trillion. The deficit is higher than in 2013 when it was $478 billion. One reason
is because the dollar strengthened 28% between 2014 and 2016. A strong dollar makes imports
cheaper and exports more expensive. But the deficit is less than the record $762
billion seen in 2006. The decrease since then means U.S. exports grew faster than imports.
That’s good for U.S. businesses and job growth. President Trump wants to reduce these deficits
partially with protectionist measures. In March 2018, he announced he would impose a
25% tariff on steel imports and a 10% tariff on aluminium or aluminium.. On July 6, Trump’s
tariffs went into effect. China, the European Union, Mexico, and Canada have announced retaliatory
tariffs. Now we shall focus on China specifically here
because we believe it is the most notable in terms of global effect. Last Thursday,
the US imposed a second wave of tariffs on Chinese goods worth $16 bn and China responded
immediately in kind. The result is that both sides are now imposing 25% tariffs on a total
of $50bn worth of each other’s goods in other words a total of $100bn.
The US has since threatened a third round of tariffs on an additional $200bn of Chinese
goods which could happen as early as September. President Trump also stated, that if necessary,
he would place tariffs on $500bn worth of Chinese goods.
Our view put simply is that President Trump believes that as China exports more to the
US than the US exports to China, then China will be more adversely affected by such measures.
In an interview with Reuters Mr Liu Kun the Chinese Finance Minister said:
“China will keep hitting back at Washington as the US piles on more trade tariffs”
“China doesn’t wish to engage in a trade war, but we will resolutely respond to the unreasonable
measures taken by the United States,” “If the United States persists with these
measures, we will correspondingly take action to protect our interests.”
He also added that he was concerned about the potential job losses and lost livelihoods
brought about by the trade spat. To counter the impact on the economy, Beijing plans to
increase spending to support workers and help the unemployed back into work. It also expects
local governments to spend more than 1tn yuan (£114bn) on infrastructure programmes by
the end of the current quarter. As far as the short-term impact on the US
is concerned Economists generally agree that the tariffs will raise the costs of imported
steel, increase the price of U.S. automobiles, and create domestic layoffs. The tariffs have
depressed the stock market since they were announced, though they have begun to rebound
again but analysts worry that President Trump has started a trade war that will hurt international
trade. To us this is finely balanced. Should these
tariffs continue, and China’s economy is adversely affected, then we can very well
expect to see the value of the Yuan weaken further especially against the dollar meaning,
even higher tariffs will have to be levied to counter act this; alternatively perhaps
the pain inflicted so far may bring China to the negotiating table, though 2 days of
talks just completed have so far come to nothing. This is a complex economic trade area with
many factors affecting the outcome, which we shall discuss more within our Inner Sanctum
when it is launched. However, one consequence of a poorer China whether through trade or
currency devaluation will undoubtedly be a decline in its purchase of commodities, including
gold and silver which will have a dampening affect on its price – but we are not at
this stage yet. So, what are your thoughts on this policy
of tariffs – do you think it helps the US and World economy or damages them? and what
affect if any do you think they will have on gold and silver prices?
We hope you have found this video interesting and informative and if so, please give it
a thumbs up and share it on twitter. Please ensure that you have subscribed to our channel
and pressed the bell sign so that you are notified of any future videos. Also kindly
visit our website at and if you haven’t already done so please
subscribe as a free member for regular email updates and offers.
Disclaimer: Illuminati Silver owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of
its owners.


  1. Great question. Trumps tariffs are equivalent to locking up the booze (or pills) of your addicted spouse. It WILL cause BIG problems, but ultimately nessasary before they completely die.

  2. tariffs are taxes on the consumers of the country being 'protected' by the tariffs, nothing more. Please stop protecting me. China can effectively offset US tariffs by devaluing the renminbi, so the currency wars will start in earnest too…not good…

  3. If Trump goes too far it will bring the end game ever closer as its effecting world economy's. China Russia the EU Iran and more will start a new standard for oil, precious metals and currencies maybe cashless but certainly the end of the dollar standard. When the rats have their backs to the wall they will fight back.

  4. I honestly don't know what effects trade wars will do. But, trade wars tend to create currency wars that lead to real WARS

  5. This will not end with hugs and kisses. Instead it is the beginning of unlocked open antagonism on both sides. It is clear the Trump Administration’s Asia knowledge is poor and thus generates unrealistic goals. What Trump fails to see is Xi and Putin are dictators. Citizens there are not allowed to exercise extreme self liberalism like in the West. What the West doesn’t see as a whole is China is very clear of our political system and pop culture. They totally know our strengths and limitations and will exploit to maximum advantage. Whilst Trump has to be campaigning again next year.

  6. So I just saw an interview with Jim Sinclair that thinks we are going to have a re-evaluation of gold this September. I am sceptical, because I have heard the same song for years now, but what do ye think of the man?

  7. 1) The dollar is the world reserve currency. The world manipulates their currency against the dollar for their own trade advantage.

    2) PM's are priced in dollars.
    As the world manipulates their own currency for trade advantage, they strengthen the dollar and PM's lower in price when priced in dollars.

    3) A weak everything else strengthens the dollar. PM's are included in the statement.

    4) Germany, Russia, and other major world markets are calling for the creation of a world reserve currency. They dont want their own currency to be the new reserve currency because they know the rest of the world will manipulate against them. If this happens, the dollar will weaken and PM's will strengthen while priced in dollars.

    5) Any self respecting PM guy doesnt fuss and cry when PM's drop in price. When PM's go on sale, they just buy more.

    6) Tariffs are just being used for posturing. The US threatens tarrifs. The rest of the world manipulates their currency and threatens tariffs. The US goal is to stop trade imbalance. The rest of the world seeks prosperity through unfair advantage. While the dollar is the world reserve currency, any tariff talk will most likely result in currency manipulation and a stronger dollar. Hence lower PM's.

  8. Illuminatisilver ●●●●■■■■■■●●●●●●●■■■■■■ Don't you feel we are much closer to a black Swan event due to all the things going on, 07 crisis still not fixed , Germany bank hurting, ect ect????????●●●■■■●●●●■■■■ And due to that are way under price in relation to the current risk out there.

  9. The United States just wants a fair deal we want a good deal and a good deal is a two-way good deal good for them good for us !!! And if it erupts into a trade War great I'll be able to find a pair of underwear that's made in America with the elastic strap doesn't rip apart I'm sick of cheap Chinese products I rather pay the extra dollar for quality !!! With that being said God bless.. we won't even notice it !!! That's affect the trade Wars going to have on us !!!

  10. Trumps deal with China may be a winner. He may collapse dollar but remember he shines best with bankrupt companies.
    Trump is pro gold.

  11. The United States is completely self-sufficient we have fuel we have food we have gold we have silver we have everything here …We don't need them all we need is our jobs back and that's exactly what's going to happen…. Is the factories are going to have to start up to supply the American people with durable goods once again just like in the old good old days everybody's going to make money everybody's going to be prosperous this trade war is a good thing… I am so sick of cheap Chinese crap and trying to buy American it's almost impossible !!! The China need to be b** slap for what they've done to America !!! And I'm not kidding !!! So everybody out there Cowboy Up !!! Time to be a man !!! God bless … That's just one man's opinion..

  12. Whilst I respect your view and opinion, I also think that we need to focus in another global importance. This I believe is also impacting the markets. The Euro is growing rapidly and the Pound sterling is dropping, possibly due to Brexit and that infrastructure. Look at the European markets.

  13. I've heard one economist, admittedly of the Austrian school, explain that most people have personal trade deficits such as the one with their local grocery store. An individual "imports" a great deal of food from the grocery store and transfers money to it in return. The grocery store almost never imports anything from that individual. This is a trade imbalance, but it also is fair in that both sides get what they want from the exchange. Now if the individual imposes a tariff against the grocery store because of this trade deficit, a $50 bag of food may then cost $60 or $70 for the same amount. Although this may slightly reduce overall sales of the store it can also deprive the individual of what he or she wants or even needs. At the very least it makes feeding the family more expensive.

  14. I think Xhina has a lot more to loose. Jobs back in US. I have close friends, know that a lot of Saudi wells went dry. U.S will fill the gap as in Irans inability to sell oil. US Dollars and oil will reduce debt and dollar increases, Gold falls silver bounces down slowly. Unless Putin does something stupid. US in control after Trump wins 2020 elections. I'm buying @ 13 and as far down it goes. My kids will be ok.

  15. At this point, I think Trump wants China in negotiations. The situation I'm watching right now is Russia. Last Monday, Trump froze all cash assets in US belonging to Russian oligarchs, with more "sanctions" to come. More here than meets the ears or eyes. (Still waiting on confirmation email for your free membership to Inner Sanctum.)

  16. Adversely effect??? Depends, push the prices up? So we don't get to stack as much. Push prices down? So we perceive lower value to what we have already purchased. It really doesn't matter if you have already decided that any more is extra to what you think you need. If your a newbie best make hay anyway.

  17. Have been buying Plat since it broke the support trend line established from 2009 & 2016. Entry tranches at 850 & 800, 750 should be hit soon with another at 700 possible before the mid term elections. Precious metals will continue to fall (with exception of Rhodium) as the trade war worsens, dollar strengthens and interest rates rise in the US. The day that China and the USA make nice nice with each other on trade the dollar will fall and precious metal will rise. When that will be is anyones guess. Buying Plat at these levels seems like a good calculated risk. Average global cost of production is approx. $975 per ounce. I wouldnt be surprised to see Silver and Gold fall by another 10-15% over the next few months as Trump increases tariffs from 40 billion to 240 billion over the next 60 days. Cheers!

  18. why are we bothering to discuss world trade ,untill we have a real chance of stored weaith beyond banks and governments

  19. Maybe I am missing something. But, why would the US want to continue trading as it has been if there was constant imbalance with the US losing annually. China has so much debt it does not want give back in trade with the US. The previous US administrations allowed corporations to go overseas. We constantly have a leaky faucet filling the empty space of others. So, Trump is coming on strong to stop this. An outcome creating a weaker economy I would think would cause spot prices of precious metals to rise. But, if there is less money to spend purchasing won't have an upward trend. So, I don't know which way spot prices will go. If a black swan event comes from this then gold and silver will go up.

  20. My understanding is the problem is not China, but American manufacturers. Apple, for example, employs around 24,000 in the US while it employs. directly and in the supply chain, between 700,000 and 2 million in Asia (reported figures do vary widely). In effect, he is taxing American manufacturers into repatriating jobs back to America – to make it great again. After the reset, deficits will be settled in gold, not printed fiat currency. Trump is just getting started.

  21. I have no doubt in my mind that China will be the winner in the trade war. I see tariffs as a tax on consumers. And U.S.A is the ultimate consumer. U.S.A is mostly a service based economy. The tariffs plus high inflation will cause the price of PM higher. However, my opinion is that the United states government will default on their debts. This will lead to a Dollar crisis and a world wide recession. If this occurs PMs could be sold off in large numbers.

  22. If the US can print to oblivion so why can’t china?? They pay for this trade war by borrowing form future generations because neither country can truly afford it. Therefore gs is an accumulate for me.

  23. Trump is a businessman. Like any business, if you are selling apples and your customer wants to buy oranges, you sell oranges or your business will falter.
    It is called Supply vs Demand. Trump did not become wealthy by forcing people to buy apples. Only government can do that. Government will put us in jail if we don't pay taxes. However, there is no law that forces us to buy a cell phone. We use a cell phone because it suits our needs, right. The government folks realize that cell phones are in demand and taxes our desire for cell phones to the max. When I was on a business trip to Japan in 1978, a car that cost $6,300 in the US, was $26,000 in a Tokyo showroom. That difference in price is called a tariff. The Communist Chinese bureaucrats built ghost cities in China. Nobody lives there now. China is a business, it wants to win. One of it's rules is that intellectual property rights of a business become theirs if your business is in China. Google is under fire right now because it gave censorship rights to their Chinese Google counterpart. I am not saying which is right, tariffs or no tariff's. I am saying that the law of supply vs demand is real.

Leave a Reply

Your email address will not be published.