The immediate repercussions of the ‘Brexit’ vote left the United Kingdom (UK) and the rest of the European Union (EU) with a huge number of problems.
Many major issues, from fears over an increase in the numbers of immigrants being deported from the UK, to major economic changes within the UK and the EU, have left the rest of world with many unanswered questions.
But, for industries like Atkinsons Bullion, the uncertainty has brought some benefits. In the months following Brexit, some niche markets, such as the jewellery and gold market, have experienced a renaissance as Britons learn, anew, the security of investing in jewels and gold.
The modern day ‘gold rush’ in Britain will not be a matter of mining for resources, but the rise of a more pronounced jewellery and gold industry.
The Fall of EU Financial Standards
For decades, Europe was viewed as the impenetrable fort of materialism and financial freedom. But, three days after the Brexit vote, UK stocks and sterling hit rock bottom. UK Reuters reports, that, in the days and weeks following the Brexit vote, many Britons decided to convert sizeable portions of their life savings into gold.
An Unprecedented Vortex
The Brexit vote and the resulting fall in sterling took many people by surprise and caused widespread alarm. The economic uncertainty has had far-reaching effects across the UK economy Reuters spoke to one UK family who invested in gold in the days following the Brexit vote. They stated, ‘[We] are both worried about bank failures and our cash getting swallowed up. I’m also worried about our kids’ jobs and their future.’
Making the Best of the Situation
Prior to the Brexit vote, misleading statistics about the levels of UK funds allocated to the EU encouraged people to vote to leave. However, as with all propaganda, this presented a very one-sided, and allegedly inaccurate viewpoint. In the aftermath of the vote, many have regretted the vote they cast, even though the long-term changes for the UK are still difficult to predict.
For now, many Britons have chosen to protect their savings by investing in traditionally stable gold and jewellery markets.