Even if you never pay close attention to politics on the other side of the Atlantic, you certainly must have heard about the United Kingdom’s decision to leave the European Union. The decisions were labelled as “Brexit.” The decision had a lot to Europe, Britain and the world as a whole. There could be repercussions in economics, security, and politics. Some of these repercussions have already been felt in the economic sector.
Just after the Brexit, the demand for gold has been on a consistent rise. Previous fears that the leave campaign was going to have an impact on the economic became real. Just after the Friday vote, prices of gold were sent upward by about 5 percent. Gold has taken on a massive growth by 25% in 2016. It has risen by a massive amount in the past two years.
The Brexit vote resulted in bad times and good times at different sections of the economy. Take for instance stocks that rose and doubled months after. Investors that sought refuge from the failing pound went for precious metals and gold. A precious metal like silver did better compared to gold and increased by a massive 10 percent daily. Several European shares indices dropped by about six percent whereas the dollar saw a growth by about 1 percent.
Compared to investing in gold, the stock market is usually a slippery slope. Bonds too have experienced a severe weather investment as skepticism over their investments grow. According to experts at US Money Reserve, precious metals such as silver and gold have always experienced a healthy forward leap. The demand for the precious metals has been highly surprising in the recent past. While currencies steadily weaken, coins and precious metals have always increased in value.
Investing in coins is a long-term shot, it is wise to buy lock it away for some time so that you can get a real profit with your investment.
The rate at which people have purchased gold has risen rapidly in the past. There have been cases where people convert as much as 40 to 50 percent of their whole net worth to physical gold. Previous years have had people invest sparingly with only 5 percent.
Gold has always been valued as a sign of wealth, the recent demand for the gold after Brexit shows that it is no different. Investing in gold today is a sure way to preserve your wealth for any economic turmoil in the future. Anyone that invests in gold for the long term will always find the investment worthwhile.