Secure Gold Now” … Global Emergency Over Gold Supply Crisis

Gold Prices Surge Amidst Global Trade Uncertainty and Political Shifts

As global trade faces uncertainty due to the impending tariff wars hinted at by U.S. President Donald Trump, the international gold market is experiencing significant turbulence. Amid concerns about the policies of Trump's second administration, the price of gold, considered a safe haven asset, has been soaring. Wall Street has reported an increase in demand for physical gold, leading to a mass transportation of gold bars to New York in what’s being called the "Transatlantic Gold Rush." This sudden surge has raised suspicions about the availability of real gold, especially as it’s been reported that it now takes over two months to withdraw gold from the Bank of England’s vaults.

On February 17, 2025, even Tesla CEO Elon Musk, who also heads the Department of Government Efficiency (DOGE), joined in questioning the authenticity of the U.S. government’s gold reserves, contributing to a growing sense of uncertainty in the international gold market. According to the London Bullion Market Association (LBMA), in January, gold worth $14 billion (about 20 trillion KRW) was withdrawn from London’s gold reserves, marking the largest decrease in reserves since LBMA began keeping records in 2016, down 1.7% from the previous month.

On the other hand, U.S. gold reserves continue to rise. The Chicago Mercantile Exchange Group (CME Group) reported that as of the end of January, gold stock at the COMEX (Commodity Exchange) had reached 927.92 tons, the highest it’s been in two and a half years. Reuters reports that since President Trump’s re-election victory in November 2024, New York’s gold stock has surged by 578.56 tons.

The contrasting trends in gold stock levels between the U.S. and the UK have been largely influenced by growing discrepancies in gold prices between New York and London. As of the evening of February 17, 2025, the price of April gold futures on the COMEX in New York had risen by $20.40 (0.7%) to $2,921.10 per ounce. Gold futures prices have increased by 27% last year and have risen a further 10% this year. Notably, the price reached nearly $2,968.50 per ounce on February 11, approaching the $3,000 mark. In contrast, London gold was priced at $2,900.55 per ounce, which is over $20 lower than New York’s price, fueling a surge in investment demand to profit from the price difference between the two cities.

As a result, banks on Wall Street have started a "gold bar transport operation" to capitalize on the price differences, moving gold stored beneath London’s financial district to New York. This shift in global gold trade dynamics has led to unintended side effects, including shortages of gold bars in New York, where the demand to transport gold there has spiked. The delays in gold withdrawal are causing borrowing costs to rise as parties look for alternative sources of gold. The Wall Street Journal (WSJ) has commented that this latest gold rush highlights the ripple effects of Trump’s trade policy and how it’s reshaping global markets.

This global gold supply crisis underscores the vulnerability of the international economy, influenced heavily by the shifting political landscape and increasing uncertainty over trade. As world leaders and major financial hubs adapt to these challenges, gold, long seen as a safe haven in times of uncertainty, continues to shine—though not without questions about its true availability and the impacts of the ongoing political changes.