Gold Was Rising Long Before Brexit

Financial markets are in turmoil (and will likely be for days and maybe even weeks) following the Brexit vote. It’s amazing that markets were so unprepared for the outcome, given the closeness of the polling right the way through the campaign. Whilst the result might be a shock to some, it was hardly a surprise. Gold has been the biggest beneficiary, smashing its way higher to its best level since the GFC - great news for investors in Aussie junior gold stocks. These days, no currency around the world is as stable as gold and the Brexit vote and the Orlando terrorist attack has surely ended any prospect of a US rate rate increase. A look at gold in all of the major currencies of the world since late 2015 unveils the strength in gold and weakness in fiat money. Prior to the Brexit vote, gold was up 24% in dollar terms, 19% in euro terms, 6.5% in yen terms, 29% in pounds sterling-terms, 20% in Australian dollar terms, 19% in Canadian dollar terms and 20% in Swiss Franc terms.