With Britain’s exit from the European Union now a reality, demand for gold coins has been on the rise. Many investors naturally turn to gold in times of economic stress as an alternative that will keep its value over the long term.
Since Brexit, buyers in the U.K. and around the world have been turning to gold coins and bullion as a way of providing security to their financial portfolios. The price of gold has already risen in response to this demand, and is likely to go higher as concerns elsewhere in Europe mount over Brexit’s ongoing effect on the financial markets. Brexit has had a greater impact on gold price than even the valuation of the U.S. dollar. But the coming presidential election in the U.S. is only exacerbating the problem elsewhere.
While the ultimate result of Brexit has yet to be seen, the rising prices are in part mitigated by sellers who wish to take advantage of the jump in price to sell their current holdings at a profit. However, the likelihood is that the value of gold will continue to rise as the economies of Britain, Europe, and the rest of the world face an uncertain fate over the next few years. Gold and other precious metal investments will continue to be seen as a sound financial move, particularly if the worst fears are realized and Brexit wipes out millions in British stock values.
Gold has been a prized and easily liquidated source of wealth throughout human history. Even amid the financial failures of the Great Recession a few years back, the value of gold continued to rise. Gold coins and bullion can be seen as not only retaining their value, but almost guaranteed to appreciate when other sources of wealth are failing. In the five days following the Brexit vote, the rush to buy gold exceeded by 10 times the amount sold at the end of the recession in 2011. That amounts to some $2.7 billion changing hands in the first week alone.
If you’ve thought about getting in on this trend before prices rise much further, you should visit U.S. Money Reserve to get a picture of the current precious metals market and obtain your free Gold Information Kit.