While it is not the first time that Britons are turning to gold. Dealers in gold have seen a rapid surge in demand for the product just like that seen at the end of 2008 and during the Europe debt crisis as experienced between 2012 and 2013. The interest in gold at these times went down quickly. This time, however, dealers predict that the interest in gold after the Brexit could go on for some time. It has shown a little sign of declining since Briton buyers are no longer sure of their stock markets.
Gold itself has played a significant role in the exchange of currencies and goods for a long time. The currency was able to serve several countries until the World War One. During the time of gold standards in the 19th century, many countries had the value of their currencies fixed on a specific amount of gold. Gold has served a critical purpose in history. It today serves as a safe haven for places undergoing an economic turmoil.
The Brexit vote saw the price of gold go upwards by a massive 5 percent. Gold positively took off just one day after the Brexit. After the 5 percent increase, it has soared through higher margins of growth throughout the year. The good times of gold have spread rapidly to other areas in the industry. There has been increased stock prices in other regions of the markets as well. Various stock markets have seen a decline in their value as investors sought refuge from the falling pound and went to gold and other precious metals.
Silver, on the other hand, did better compared to gold. It experienced a massive gain of about ten percent on a single day. Meanwhile European shares prices dropped through six percent whereas the dollar had a small margin growth of only one percent.
Anyone skeptical about investing in gold or precious metals should take a look at Europe’s Brexit. While the Brexit brought an economic uncertainty, it contributed a lot to gold rush overseas. Wise investors quickly moved their funds to this safe haven causing a demand and increased value for this precious metal. Even though the value of gold went up by more than 20 percent after the Brexit vote, should you join the frenzy and purchase a pile into the precious metal. While you could be cautioned with this step, gold is still a significant investment and long-term security.