Brexit: Anomaly or Awakening
This article originally appeared in Resource World Magazine.
Gold and other safe haven assets have seen strong momentum leading up to the June 23rd ‘Brexit’ referendum when the United Kingdom will vote whether to remain within or exit the European Union. The lead up to the referendum has seen a populist political charade take place in a major Western power. A few years’ prior, these political events were confined to smaller and less economically significant economies, such as Greece. Now, investors are left worrying what the economic significance is of a major economy like Britain questioning their role in the economic union. Furthermore, asset classes such as precious metals, western government debt, and the dollar are showing strength as investors’ hedge the possibility of populism prevailing and upsetting the political status quo.
Fundamentally, it makes sense for gold to react positively given…. click here to keep reading.