The Brexit Vote Is Decided!
The vote was tallied and decided, the UK will be leaving the EU. The Brexit is happening? If you are anything like me I much prefer sovereign nations with elected officials running the show rather than a group of non-elected officials in far off lands making decisions for the worlds economies. I recently saw this video of Nigel Farage which further solidified my opinion about the EU.
Gold is Up Thanks to the Brexit Vote?
If history teaches us anything, it is that Gold performs well when their is uncertainty in the world. This Brexit event has showed us how easily one isolated event can push its value up in a short period of time. Now the banks have a pretty good idea what is going to happen next but we know for certain that the uncertainty around the world does not end with this vote.
I personally believe we are looking for a sharp rise for Gold in the coming months. The US election alone is enough to warrant concern. Also many well known names like Soros, Jim Rogers and Jim Rickards are all expecting Gold to rise. As someone who just buys precious metals and holds long term these are just more reasons to hold steady.
The Surprise Safehaven Asset was Bitcoin.
Once again Bitcoin performed well during a crisis period and is quickly being recognized as a safehaven asset. Just watch this CNBC interview about Bitcoin to see what is happening post Brexit.
The Economy is Slowing.
As I sit here in my office overlooking Panama City, Panama I get the sense that the economy of the world is really slowing down. I can go to any mall and see shops closing, rental prices coming down, restaurants going under and people complaining that they can’t find jobs. As someone who has lived in this hot bed of growth for five years I can tell you with 100% certainty that the economies of the world are hurting.
‘When goods do not cross borders, soldiers will.” Frédéric Bastiat
In the coming months my guess is that blame will be thrown around like confetti. Countries will begin to look outward to lay blame just like the government of Venezuela is blaming the USA. Politicians and bureaucrats rarely look in the mirror and take the responsibility upon themselves. First we will have bickering, then military tension and then war. It seems like an endless cycle but this is how the world works and if you are smart enough to know this you will be setting aside some funds for gold.