The value of gold increased by more than 20 percent hours after the BREXIT vote. On the contrary, the value of Great Britain Pound was at a record low for the last three decades trading below $1.30 due to concerns of stock market meltdown. Many investors turned to gold as they envisioned tough times ahead when various currencies such as Great Britain Pound could find difficulty returning to its original value. BREXIT brought a sense of panic and uncertainty not just in Britain, but the European Union and beyond. Some investors have even bought gold for the first time in their life.
On the day of voting, gold traded at $1260 per ounce. At the time, the polls suggested that remain side would win and Britain would have to stay in the EU. After the vote on Thursday, it became clear that Britain had voted to leave the EU, the price of gold soared to about $1350 an ounce representing about a six percent rise. Many financial analysts believe that the sharp increase in the price of gold and fall of the GBP was because the investors were caught unawares.
The historic vote impacted the financial balance of the world, and it was a decision for the United Kingdom to leave the European Union. The reason there was a rush in the demand for gold was that investors were rushing to safeguard their wealth. Before BREXIT, Britain’s biggest online gold dealer BullionByPost, forecasted the biggest ever trading day if the voters decided to vote Britain out of the EU.
As Britain voted out of the EU, it was a moment of reckoning and a day that will be remembered by the future generation. Therefore, gold miners and producers of gold products took the opportunity to ensure people do not forget the day that changed the future of Britain as a non-member of the European Union. Dealers such as the Govmint are selling gold coins measuring 26 mm, 1/10 oz. The coin features the outline of the UK and a color opposite that of EU. U.S. Money Reserve also received a high demand for gold following the BREXIT shocks in the market. The agency currently serves hundreds of thousands of clients who have bought gold to safeguard wealth.