Brexit & Gold

Brexit refers to the withdrawal of the United Kingdom from the European Union. Following a June 2016 referendum, in which 51.9% voted to leave the UK government formally announced the country's withdrawal in March 2017, starting a two-year process that was due to conclude with the UK withdrawing on 29 March 2019. 

During times when countries have a large amount of political and economic chaos individuals see gold as a ‘safe haven’. People run to gold during times of uncertainty and ambiguity this is due to the fact the trust in banks decreases. Worldwide as a whole gold is the universal form of currency, no matter what country you go to the value of gold is the same and is considered a form of wealth/money.

Buying gold at this time is the most perfect time as in regards to a ‘no deal’ the pound will become weaker and hold less value than it did before. The fear that investors will have if we undergo a ‘no deal Brexit’ is the fact that a no deal will leave the UK isolated and unable to trade properly. The fear for investors in regards to this topic is the spike in the gold price. Therefore in the case of the UK & Europe cannot agree to a deal then this would predict a snowball effect of demand in which the pound will become weaker and the gold price with rise up highly