Britain, Brexit, Bullion and the Pound — Lawrie Williams

Against most predictions, Britons voted to leave the European Union in yesterdays’ referendum. Pollsters, and even the bookmakers, had obviously failed to account for the huge underlying anti-EU sentiment across the country. In regional terms only Scotland, Northern Ireland , and perhaps most importantly London and the odd pocket in the richer south-east of the country, voted to remain in the Union. This will undoubtedly build-up problems ahead, particularly should Scotland, as its leadership has threatened, push for a new referendum with the intention of gaining independence and rejoining the EU on its own. In Northern Ireland the prospect of having to re-implement border controls with the Republic, which is in the EU, could reignite sectarian differences. Should Scotland secede and join the EU, the imposition of border controls with England, which would presumably become necessary, and free movement of people between the two countries, would be another extremely touchy subject!
Ross Norman, CEO of U.K. bullion dealers Sharps Pixley, noted in an early comment this morning: ‘Gold rocketed this morning as the shock U.K. referendum result saw carnage in financial markets, prompting a rush to safe haven assets like gold. With sterling falling to its lowest in 30 years, the biggest gains were seen in gold for U.K. investors which rose 20 pct in just a few minutes before settling this morning at gbp 960, a gain of 12 pct on the day so far. ‘

This post was published at LAWRIEONGOLD