England’s Brexit Vote May Cause Gold Rush
Dillon Gage Metals, an international precious metals wholesaler, is investigating what potential effect the upcoming Brexit vote may have on the global precious metals market.
Tomorrow, British voters will cast ballots to determine whether or not the U.K. will remain in the European Union. According to Dillon Gage Metals Chairman Stephen W. Miller, if the Brexit measure passes, the effects may positively impact long-term value in the precious metals market.
“The rising tide of immigration to Europe appears to be the critical factor driving the Brexit vote,” said Miller. “However, the hidden issue is the instability of global banking, which appears to be reaching the limit of operating as debt-based currencies. Central banks print more money but run the real risk of going negative without enough cash to cover. That could drive investors to safe havens such as precious metals.”
Further signals add to this scenario. As noted by the Wall Street Journal, George Soros’ Soros Fund Management LLC, with $30 billion in assets, has recently sold stocks to invest in gold, predicting global market instability. Meanwhile, just ahead of the critical vote, gold dealers based in England, such as ATS Bullion, report a sharp rise in sales and investment in the precious metal.
“If Brexit passes, it may be good for Britain but certainly bad for the EU,” said Miller. “If it causes additional countries to consider leaving, it only adds to a future of uncertainty for Europe. And uncertainty almost always drives the precious metals market upward.”