Traders Load U.S.-Bound Planes With Gold and Silver in Tariff Bet

Over the last few months, sealed wooden boxes have been arriving in the holds of commercial flights from London to New York, strapped up and tightly packed against tampering. When they land stateside, they are collected by trucks whose drivers, generally, don’t know what they’re hauling. 

What’s inside are stacks of silver bars that traders, fearing that tariffs from the U.S. government are imminent, are loading onto planes to rush into America.

Gold is commonly flown between key global trading hubs including London, New York, Zurich, Hong Kong and Shanghai. Cheaper, bulkier silver is typically sent by ship.

Many market participants doubt that precious metals will be included in any tariffs, but that has not stopped traders from seeking to close out their exposure.

But the Trump administration’s threats of tariffs have created unprecedented dislocations. U.S. silver futures have spiked to a premium of more than $1 per ounce, making air freight viable, and sending traders rushing to get metals into the U.S. before the new trade measures are announced, according to traders.

“It is highly, highly unusual,” Philip Newman, industry veteran and founding partner at the consultancy Metals Focus, said. “It’s the first time I’ve heard of that in terms of the London to New York route.”

Gold and copper are also pouring into the U.S. Futures have surged above their international benchmarks since Pres…