Brits Rush to Buy Gold as MP Theresa May Triggers Article 50!
Daryl Jackson, News Editor
31 Mar 2017, 9:23 a.m.
The UK triggered Article 50 on Wednesday 29th March – the formal process of beginning to leave the EU. With it comes considerable uncertainty with an increase in UK investors buying gold to protect their wealth and savings because of the volatility over the next few years as the UK heads out of the Union.
As reported in The Wall Street Journal – demand for gold in the UK increased by almost 40% last year according to GFMS.
Commentators say whilst the uncertainty continues – demand for gold in the UK will continue for some time to come.
However, it’s not just the triggering of Article 50 by Prime Minister Theresa May yesterday that is likely to keep the gold market in the UK strong.
Rob Halliday-Stein – Managing Director and Founder of www.bullionbypost.co.uk said:
“We never try to forecast the future especially in the short term as it’s very unpredictable. You really must analyse the broader situations around the world as it’s those that can drive the gold price. As far as investments are concerned, when you consider Brexit and the triggering of Article 50, gold is undoubtedly one of the good investments to hold. It’s going to have a big impact on the number of people turning to the precious metal because the uncertainty could last for years to come as a result of that”.
“I think the bigger issue right now is the situation across Europe as a whole and not just the fallout from Brexit and the impending drawn out discussions and ambiguity that are to come. The Greek crisis is far from resolved and the increasing strains and pressures across the EU and especially the Eurozone look like there are still a lot of problems. I tend to view gold on a five or ten-year horizon – and when you look at the outlook for the world – I think there is still a very strong case for holding gold as part of your portfolio. It will, at the very least, keep its value and preserve wealth. It may spike much higher than that at points of crisis and then it tends to pull back a bit. I am fairly optimistic for the outlook for the gold price and conversely less so for the world”.