Brexit is coming: will gold save Britain?
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Brexit is coming: will gold save Britain?
Global InterGold

 

The world anxiously awaits Brexit*, which is planned for October 31, 2019. Experts fear that Britain’s exit from the EU can cause global economic turmoil. The economy of the European Union is the second largest after the US. Instability in this part of the Old World will inevitably affect the entire globe.

Given the circumstances, what are the prospects for gold? How does it react to the current situation?

 

The situation heats up

British Prime Minister Boris Johnson is a strong supporter of the “no-deal Brexit”, which entails deterioration in relations between Britain and the EU, requiring to enter into new agreements in all areas of cooperation. This option gives Brits more freedom in decision-making processes, but at the same time poses challenges for both parties, resulting in considerable financial losses.

The Head of Brussels Office of the think tank Open Europe Pieter Cleppe believes that a “no-deal Brexit” will cause half-a-million job losses in Britain, and more than a million in the EU.


In the photo: British Prime Minister Boris Johnson.

 

Brits stock up on gold

According to the Federal Customs Administration, 90.7 tons of gold were exported from Switzerland to the UK in July 2019. This is a record amount over the last six years — 1000% more than last month. The reasons for the shopping spree were a surge in gold prices and rising concerns over the economic uncertainty. Gold is known as a reliable anti-crisis asset, so British citizens stock up on it to strengthen Financial Security in the run-up to Brexit.

Since early July, the price of gold in British pounds has risen by 11%. The price growth over the last year was 32%.


In the chart: the surge in gold prices that began in July convinced Brits to buy the precious metal.

On September 10, 2019, the price of gold in British pounds was £1,206 per ounce. The price of an ounce of gold in US dollars was $1,489.

 

Brexit drives up gold prices

In 2016, a referendum was held during which the British people voted to leave the EU. Just a few hours after the voting, the price of gold in pounds soared by 22%. The closer Brexit, the greater the anxiety, thereby giving a further boost to the price of gold.

Ross Norman, CEO of the London-based investment gold company Sharps Pixley:

“Our company’s turnover has tripled this year. Economic threats motivate people to buy gold bars. Everyone feels that something isn't quite right.”

 

Rhona O’Connell, Head of Market Analysis at the financial company INTL FCStone:

“Unless and until we’ve got a degree of clarity on Brexit, the only way for gold is up.”

American banker John Pierpont Morgan once said: “Money is gold, nothing else.” Today, when the economy falters all over the world, these words are particularly relevant. In the face of ever-growing challenges, only gold remains stable, ensuring Financial Security for both states and citizens.

 

WHY IS GOLD — YOUR LIFELINE?

 

Glossary:

*Brexit — the withdrawal of the United Kingdom from the European Union.

 

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Published: 10.09.2019
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Goldlaura
Goldlaura
Muy de acuerdo, gracias a Global Intergold mi negocio del oro se está incrementando y lo más importante me da estabilidad y seguridad financiera para mí familia.
Sep 12
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Álvaro Pinto
Álvaro Pinto
Excelente información
Sep 29
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Álvaro Pinto
Álvaro Pinto
Me gustaría obtener más información al respecto.. Envíeme detalles
Sep 29
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