Europeans are stacking gold on Brexit fears
Duncan Richardson, News Editor
17 Jun 2016, 11:10 a.m.
Gold and sterling are both trading violently ahead of next week’s crucial European referendum. Brexit has the potential to be the most important political event of 2016, perhaps even more crucial than the November U.S. election. Politicians in Brussels are becoming increasingly concerned the people of Britain will vote to leave. Should the leave campaign prevail on the 23rd of June the European project could start to unravel.
Europeans across the continent are becoming increasingly frustrated with the European experiment. In a recent poll undertaken by The Pew Research Centre nearly half of all Europeans said they have lost faith in the EU and the European Central Bank.
The world’s elite are concerned Brexit could trigger a meltdown in the global financial markets. Former Fed Governor Alan Greenspan and Former Bank of England Chief Lord King are both advocating the public should own gold as a form of insurance against extreme volatility in the global markets.
The world’s leading central banks have confirmed they are ready to act if global markets tumble following Brexit. Considering all they can do is print money and manipulate interest rates their ability to manage a successful outcome would seem limited.