Risk and the sp9 Apr 2025 17:36
I'm writing on a day when my other PM stocks have been rising after several trading days of huge falls due to Trump's tariffs. There is still some way to go before they get back to pre-tariff levels.
However, my point is that out of my PM stocks, GFM is the only faller today. GFM has fallen heavily.
Is that because China is now seen as risky? Trump put a tariff of 104% on Chinese goods and the Chinese hit back with a tariff of about 80% on US goods, 84% I think it was.
If the trade war turns very nasty, which looks likely as no side shows any sign of backing down, then could the Chinese government act against foreign investments? Of course GFM is British and not a US company, but if things get nasty, currency controls might be introduced and GFM wouldn't be able to pay a dividend to its investors. I have other PM stocks that, due to the high gold price, have started to pay dividends and GFM is likely to follow suit.