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Peter Hug: The Best Metal To Own During A Trade War With China

Kitco News

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(Kitco News) - The best metal to own to weather the trade wars storm is still gold, owing to its status as a safe haven and the potential for industrial metals to suffer from the economic consequences of tariffs, this according to Peter Hug, global trading director of Kitco Metals.

“Given the current state of sort of the macro picture that I’m looking at right now, I still consider gold the best performer short-term. If there were to be a reversal in, sort of the rhetoric regarding China and ideally the tariffs don’t go to 25% and stay at 10%, I would be then much more aggressively inclined towards metals such as palladium and platinum,” Hug told Kitco News.

On silver, Hug said that while trade wars fears have boosted gold prices, potential weakness in global growth have weighed down on silver.

“If you look at silver in the context not in relationship to gold but more in the context in relationship to the industrial metals, platinum, palladium, they’ve all been under pressure recently and that’s primarily because of the anticipation of a global slowdown and what that will cause will be less demand for the industrial metals,” he said.

Gold ended Monday’s session more than 1% higher, while spot silver remained relatively unchanged.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.