Editorial: Brexit vote stokes gold rally – by John Cumming (Northern Miner – June 28, 2016)

http://www.northernminer.com/

With all the political turmoil surrounding the United Kingdom’s surprise, non-binding vote in a June 23 referendum to leave the European Union, the world has certainly learned a few lessons.

Number one for gold miners and investors is that gold performed exactly as promised by gold bugs, serving as a valuable insurance policy against political and currency risk in any investment portfolio.

Polls in the months leading up to voting day all pointed to “Remain” winning, as did the early voting results, but as the night wore on, “Leave” swung to the winning side. Ultimately, 51.9% of U.K. voters supported an exit from the EU (17.4 million votes) while 48.1% (16.1 million votes) expressed their desire to remain, with a turnout of 72.2%, out of a total population of all ages of 65 million.

The Leave votes were concentrated in Wales and England outside London, while the Remain votes were centred in London, Scotland and Northern Ireland. The U.K. has been in the EU and its precursor since 1973.

The referendum result shocked stock, bond and commodities markets around the world. In response, gold outperformed all currencies, with the U.S. dollar notably rallying strongly as the go-to safe haven.

Gold rose from a PM fix of US$1,262.15 per oz. on voting day to US$1,315.50 per oz. the next day, for a 4.2% gain, with intra-day highs of 8.1% or a two-year high. Over the same 24-hour period, silver prices rose 4.3% to US$18.04 per oz., platinum was up 2.5% to US$987 per oz., while palladium acted like an industrial metal and dropped 2.1% to US$548 per oz.

For the rest of this editorial, click here: http://www.northernminer.com/commodities-markets/editorial-brexit-vote-stokes-gold-rally/1003774597/?utm_source=NMWR1&utm_medium=email&utm_campaign=NMWR1-EN06302016&e=rq0wMrp3vyWrlxu0q82vM20

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