In a historic vote that shook financial markets on Friday, the people of Great Britain have voted to exit the European Union. While optimism over the nation remaining in the union seemed to be on the rise heading into Thursday’s vote, things changed quickly once the votes starting being tallied.
Stock index futures, interest rates and currencies starting seeing massive volatility on Thursday night as the results came in. Brexit was becoming a reality…
At one point, S&P 500 futures went “limit down” with a loss of over 100 points.
By early afternoon Friday, stocks were off the lows but not in great shape. In fact, the S&P 500 and Dow Jones were both down close to a whopping three percent while the tech-heavy Nasdaq was shedding over 3.5 percent.
The British Pound was down nearly nine percent versus the dollar and at one point saw its lowest level in over 30 years.
Interest rates declined sharply and crude oil declined by nearly 4.5 percent.
During all the turmoil, in the midst of the mayhem, in the thick of the investor panic:
Gold was up by nearly 4.5 percent while silver rose over 2.5 percent.
Think you don’t need physical precious metals like gold and silver as part of your overall investment strategy? Think again…
Unfortunately for equity investors, today’s carnage could be just the beginning. With a Brexit vote comes a significant amount of uncertainty over Great Britain’s future, the future of the EU and how business is done in the region.
This is a process that could potentially last not weeks or months but years…
Not only that, but the potential domino effect is difficult to calculate.
Scotland is already reportedly taking steps on Friday to initiate a referendum on its independence from the U.K., saying it has been taken out of the EU against its will.
How will Germany react to the news?
How will U.S. businesses handle European operations? What type of effects might be seen on profitability?
Any way you slice it, this is a situation that is going to take time-lots of time-to be sorted out.
In the meantime, investors may continue to dump risk assets such as stocks in favor of perceived safe havens such as gold and silver.
The gains being seen in gold and silver today are a simple example of the inherent value of these precious metals. When volatility spikes and the dark cloud of uncertainty hangs over global financial markets, investors may turn to tried and true precious metals.
Isn’t it time you consider an allocation in precious metals?
Adding physical gold and silver to your portfolio has never been easier than it is today. In fact, you can begin enjoying the peace of mind of gold or silver ownership by simply picking up the phone. Speak with an Advantage Gold account executive to learn more about the potential benefits of buying and holding physical precious metals. Our precious metals professionals can even show you how easy it is to begin buying and holding precious metals using your existing IRA account. Don’t have an IRA account? We can help you get one set up so you can begin building your financial future.
Don’t wait for more downside in stocks or higher gold and silver prices before taking action. Explore your options today. Call us at 1-800-341-8584 to get started now.Tags: advantage gold, brexit, dollar collapse, dow, european union, gold, market uncertainty, nasdaq, pound, referendum, S&P, safe haven assets, silver, stock market crash, stocks selling off, volatile market, vote