Who will tariffs hurt: Vista Gold or Perpetua Gold?

What does the current gold price do for the potential value of Vista Gold Corp?

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Vista Gold Corp (VGZ-AM): Good Spec Value rated Favorite - JK owns

Gold hit an all-time high on the LBMA at $3,133.70 on April 1, 2025 but by Friday April 4 it had pulled back $79.20 to close at $3,054.50 for a 2.5% drop from its peak. This degree of price fluctuation is typical volatility for gold but the modest drop on Friday had an outsized impact on gold producers as if this was the beginning of gold's retreat back below $2,000. While it makes sense that base metal producers were hammered on Friday as the market contemplated a global recession arising from Trump's Liberation Day tariffs eroding future metal prices, an economic downturn should not affect sentiment about future gold prices. In fact, the COMEX Gold Futures Curve published by the World Gold Council shows gold rising to $3,500 by 2030, hardly a sign it will plunge back below $2,000.

The best explanation for the drop in gold producer prices is that against the backdrop of general equity market weakness and gold's overnight drop in London traders saw producers as easy targets to trash with short selling which in turn spawns a knee jerk selling reaction by shareholders who may remember that in September 2008 when the Lehman Brothers bankruptcy created the financial crisis the prices of gold producers and gold itself were hit along with everything else in a mad dash for liquidity.

A major drop in the price of gold could still happen if Monday delivers an equity market meltdown, though today the economy is not leveraged with falsely risk labeled securitized mortgage paper. That financial crisis was engineered by Wall Street which used securitized mortgage debt to fuel a real estate bubble that created an illusion of prosperity even as America's corporations were marching manufacturing jobs off to China. That may have been done through a collective blindness, but today's market crisis is entirely an unforced error linked to Liberation Day and one individual's obsession with tariffs whose nature he does not understand and who has surrounded himself with sycophants who dare not tell him anything he doesn't want to hear.