Before the Brexit vote even neared, the Sterling Pound started to drop. On the day that it all happened, the formerly strong currency dropped to a startling historic low. This was predicted from the time the Leave Campaign started to gain its impetus.
The fears about economic stability in the Eurozone have only surged since the vote. The European Central Bank president, Mario Draghi, estimates a 0.5% drop in economic growth. This may look like a small number, but this is the entire Eurozone economy in jeopardy. This will translate to job loss and financial difficulty on a monumental scale.
Now, as the US Presidential election nears conclusion, America’s own economic situation has also been brought into question. Though the polls still show favor to Hillary Clinton, her Republican opponent is not too far behind. Thus there is no telling what the US economy is in for post-election.
Two of the biggest economies of the world are at their most volatile. This has left investors and average Joes alike scrambling to secure whatever wealth they have left.
Unsurprisingly, the biggest benefits are going to the miners. The prices of precious metals have skyrocketed, in particular gold. This, too, was predicted long before the votes. The spike has continued, as has the fall of the pound. Miners are not the only ones to benefit, however. UK companies that have had a majority of their markets outside of the UK are now benefiting as overseas customers find their goods cheaper to buy.
Over in America, general trends suggest that no first year of a new presidency turns out too well, at least at first, for equity markets. This is largely due to uncertainty. This is one of the reasons that presidential elections appear to have historically had a relationship with assets like gold.
Uncertainty in any economy can be offset with these precious metals. It is the best contingency for situations like in the post-Brexit Eurozone. For as long as yields are low and currencies are weak, precious metals will, quite literally, shine.
Investments to Secure Your Wealth
With all the chaos and uncertainty surrounding two of the most significant recent political events, it is hard to avoid being affected. Really, the only thing to do now is buy gold bars to protect your IRA. With precious metals doing profoundly well amidst this uncertainty, it seems that smart thing to do is invest before the global economy takes a deeper nosedive.
So why is investing in gold / silver coins and gold / silver bars important? For starters, these metals are on a record, historical upward trend. Gold alone has hit a surge that has not been seen since 2008, at least. Analysis suggests that the end of the year will see prices of close to $1,500 per ounce of gold
Silver has seen a surge of near double its 2008 values. Trends are expected to continue in these markets, at least for as long as political and economic uncertainty abounds. With a full Brexit not expected for the next two to three years, and the aftermath of the elections yet unknown, there can only be speculation.
Ultimately, the rush to invest in precious metals is set to continue, with very little slowdown thus far. Amidst the uncertainty, the only thing that is clear is that these metals may be what is keeping countless people out of financial ruin.