The Brexit vote has passed and the Brits are leaving the European Union. Those in favor of leaving the EU beat out those opposed by four percent. Those four percent, approximately 1,269,501 people, caused a huge retreat in the markets. This has caused the pound to be at it’s lowest in thirty years. The Euro is also taking hits as the markets scramble to get a grasp on a European Union sans Great Britain.
Analysts believe this drop is being caused by big movements in the gold and silver indexes. Brits bought like crazy before the vote and are still buying even as the prices go up.
Most people’s hopes are that, just like the gold investors in 2008 at the start of the subprime crisis, they will earn a hefty return in as little as four to five years.
And hopeful they should be. The price of gold on the day of the referendum started at $1254.2 By noon that had shot up by 4.7% to $1316.05. When the markets in the United States opened gold saw a jump of 8.5% to $1358.2 It seems as though the bull stepped off Wall Street and started to pulling a mining cart laden with gold toward Times Square.
This level of gold investment is unprecedented in Great Britain. There are many people that have invested as much as fifty-percent of their net worth. But Why? When asked, many Brits said they were afraid of the banks failing. Others said they saw it as an opportunity to make some real money. It doesn’t get any more real than gold.
It’s not just the lay people who are spooked. Property investment in London has come to near halt as money that was once being pumped in to an ever expanding modern skyline is now being used to buy gold.
Many analysts have been comparing Great Britain to Germany. Pointing to Germany’s financial lessons of the past and as an example of current financial stability. The Germans are notorious for shoring up their wealth with gold purchases. After having their currency devalued, not once but twice in the last century, they understand the power of hard metal in one’s pocket. It would seem the Brits, though normally cool to numismatics, are warming up (if not on fire!) to having the security of gold in their portfolios.
Learn about the Brexit gold coin