A Potential “Brexit” and Gold Explosion

Gold has had a spectacular start to 2016 and the run higher could potentially be far from over. The reasons for gold’s strong performance year to date are numerous, with uncertainty over the global economy and the Fed’s plans regarding interest rates nearing the top of the list.

Another issue near the top of the list is the potential for a vote by Great Britain to leave the European Union, a referendum scheduled to take place June 23, 2016. While this issue has become more headline worthy in recent weeks, it could potentially have some far reaching implications and could certainly stoke volatility in global markets.

Great Britain has been a member of the EU for decades, and withdrawal from the union could potentially rattle other EU members and call into question the strength of the union.

It’s no secret that the EU has had its share of troubles in recent years. Greece and its financial troubles come to mind quickly for investors, and other nations have also experienced sovereign debt issues that could potentially have significant consequences for the 28-member union.

With a lack of economic growth as well as ongoing debt issues, a “Brexit” could potentially cause a domino effect that could eventually lead to other nations withdrawing from the union. While it is impossible to say just how exactly this might affect global markets and trade, it could certainly change the geopolitical landscape as we know it today.

Judging from recent action in the gold market, there clearly seems to be good reason to be nervous.

In our view, this is simply another saga in what could become an ongoing series of currency crises. It’s no secret that China is looking to gain more favor for its currency, the yuan. The dollar index has been on the defensive in recent trade, and several nations have already begun a move away from the dollar. The euro has approached parity with the dollar over the last few months as the Eurozone economy continues to struggle and as some of its member nations deal with ongoing debt issues.

The bottom line is this: Whether caused by a “Brexit” or other factors, there could be significant changes in the global geopolitical landscape and currency markets.

Is your portfolio prepared?

Probably not…

Now ask yourself a few simple questions:

Do I have assets in my portfolio that could potentially rise in value during a currency war?

Do I own asset classes that could potentially increase in value during times of economic or geopolitical distress?

What do I have that may potentially preserve my wealth and purchasing power?

If these questions are making you at all uneasy, then you may not have the right mix of assets – and you may want to consider adding some asset classes with a long history of reliability and value.

Assets like physical gold and silver…

Physical gold and silver are valued all over the world and have been considered a reliable store of value and protector of wealth for centuries.

These assets have no preference or affiliation for governments and carry the same value whether you are in Canada or Japan.

These asset classes can potentially increase in value during times of geopolitical uncertainty and in the face of declining paper currency values.

Given a possible “Brexit,” the uncertainty surrounding the dollar’s status as the global reserve currency of choice and an ever-changing geopolitical landscape, the ultimate question is:

Why wouldn’t I include gold and silver in my investment strategy?

Adding physical gold and silver coin and bullion to your portfolio has never been easier than it is today. In fact, your IRA account may be a great vehicle for building a significant holding of physical gold and silver to save for your future. Don’t wait for the potential effects of a “Brexit” or a further decline in the dollar before taking action. Explore your options now. Speak with an Advantage Gold account executive today. Our precious metals account executives will guide you through the process step by step and show you just how easy it is to begin adding these key hard assets to your portfolio. Don’t wait. Call us today at 1-800-341-8584.

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