This June the United Kingdom made a major historic decision to leave the European Union. News of this decision went against the expectations of many experts and sent financial markets across the world reeling in response. With the uncertainty surrounding the situation the value of the British pound plummeted tremendously and UK stocks crashed overnight. The British people went into a frenzy in an attempt to find some secure investment in the wake of Brexit. In large numbers the British are choosing to invest in the reliability and safety of gold coins. Known as Brexit gold coins, this new source of investment is helping British investors protect themselves from the uncertainty of the markets.
Precious metal distributors are claiming that this level of investment in gold coins is unprecedented. Never before in recent history have the British been so eager for precious metal. The Royal Mint, a government owned bar and coin producer, has seen a 7 fold spike in purchases of 100 gram bars, which are worth about $4400 each. In some extreme cases investors are putting as much as 50% of their net worth in gold coins. The gold coin investment stands in contrast to the real estate market. More than 18 billion pounds of property funds were frozen in July after extremely high numbers of redemption requests were filed. Overall it seems the security gold coins offer British investors is becoming much more visible after the Brexit decision.
This isn’t the first time that the United Kingdom has seen an increase in precious metal purchases. During the 2008 subprime mortgage crisis an usually high number of British investors began to purchase gold and silver in high numbers. Later on during the European debt crisis of 2012 and 2013 saw an increase in gold and silver investment as well. If history has shown us one thing it’s that gold is one of the most reliable ways of securing wealth. This is why gold distributors like U.S Money Reserve and the like have been involved in precious metals for so long. Gold may occasionally see a slight decrease in value but it will never be worthless.