With the votes tallied and the U.K. officially set to leave the European Union gold bugs were in a frenzy Thursday night. I was getting texts and calls from friends all across the country of Canada and even the United States as excitement built with the rising price of gold following this historic referendum.
Searches for “buy gold” on Google soared over 500% in a matter of hours as the citizens of the U.K. rushed online to buy gold as the pound sterling fell to its lowest level since 1985.
Click here to learn more about Google Trends when it comes to ‘buy gold’ searches.
With gold up better than $70 an ounce Thursday night or Friday morning depending on which part of the world you live in, expect to see all of your favourite gold stocks up, way up Friday. Gold crested above $1,350 momentarily before settling back to the $1,325 range.
On June 21st, I wrote a quick article titled Gold Stocks to benefit from Brexit, in which I warned a breakout for gold was in the cards:
“So, with the polls shifting towards a potential Brexit in recent days, a clear catalyst for gold and related equities is emerging.”
Click here to read more about why this breakout for gold was inevitable and a key risk to U.S. equities.
While the volatility and hysteria around Brexit will have died down by this time next week, the light this event has shined onto gold as a wealth preserver will not soon be forgotten. This is especially true for the British who saw 8% of their wealth held in the pound disappear in an instant. Those who chose to diversify and hold a portion of their wealth in gold will be richer when they awake tomorrow morning.
Have a good night,
Alex
This article represents solely the opinions of Alexander Smith. Alexander Smith is not an investment advisor and any reference to specific securities in the list referred to in the article does not constitute a recommendation thereof. Readers are encouraged to consult their investment advisors prior to making any investment decisions. The information in this article is of an impersonal nature and should not be construed as individualized advice or investment recommendations.
