• 20 hours The Next Fashion Frontier
  • 2 days What Is Africa’s Role In The New Silk Road?
  • 3 days Trump Was Right About The Dollar
  • 3 days Is Silver Gearing Up For A Rally?
  • 3 days World’s Largest Hedge Fund Turns Bullish On Gold
  • 3 days It’s Time To Spend More On Clean Energy R&D
  • 4 days Contrarian Investors Are Beating The Stock Market
  • 4 days Bulgaria’s Revenue Agency Falls Victim To Biggest Cyber Heist In History
  • 4 days Amazon Faces European Union Anti-Trust Probe
  • 4 days Commodities Are Having A Stellar Year
  • 5 days Bezos’ Next Big Project Could Be Worth $100 Billion Per Year
  • 5 days 3,600 Years Later, Climate Change Turns Mammoths Into $40M Market
  • 5 days Tesla, Apple Claim China Is Stealing Intellectual Property
  • 5 days EV Giants Duke It Out For Battery Dominance
  • 6 days Tech Billionaire Takes Aim At Google
  • 6 days Chinese Police Bust Largest Ever Illicit Crypto Mining Operation
  • 6 days Expect A Pullback Before Gold's Next Major Rally
  • 6 days Why Interest On Gold Matters
  • 7 days Ten Extravagant Food Items For The Wealthy Only
  • 7 days Why Saudi Arabia Won't Give Up On The Aramco IPO
Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

John Rubino

John Rubino

John Rubino edits DollarCollapse.com and has authored or co-authored five books, including The Money Bubble: What To Do Before It Pops, Clean Money: Picking Winners…

Contact Author

  1. Home
  2. Markets
  3. Other

This Is What Gold Does In A Currency Crisis, Brexit Edition

In June the UK shocked the world - or at least the world’s elites - by voting to pull out of the European Union. Economists predicted disaster, EU leaders threatened pain for British exporters and tourists, and the media settled in to watch the UK shrivel and die.

Four months later, the appropriate response is a yawn rather than a scream.

UK economy set to shrug off Brexit in latest GDP figures...For now

(CNBC) - The first indications of how the U.K. economy is performing in the aftermath of the Brexit vote will be known this Thursday, with the release of quarterly gross domestic product (GDP) figures.

Analysts told CNBC they forecast a 0.4 percent growth in the third quarter of this year - an "upside surprise" following the decision last June to leave the European Union. Prior to the vote, many market observers were pointing to economic contractions if voters opted to leave the EU.

The pound, however, did fall hard in foreign exchange markets...

GBP/USD

...which is actually great news for British exporters, who are winning round one of the post-Brexit currency war by selling suddenly-much-cheaper stuff to the rest of the world.

The only losers? Britons who held their savings in local currency and saw the value of their bank accounts fall dramatically. But their solution was actually pretty simple: convert their pounds to gold and watch it soar.

Gold in British Pounds

Britons who did this are up about 25%, which is a pretty good year’s work for any money manager, amateur or professional.

As the "but in the long run Brexit will still be a disaster" drumbeat gets louder and negotiations with the EU drag on, gold should remain a simple, low-stress way for anyone with pounds to sail through the process unscathed.

The broader lesson? As the world descends into debt-driven chaos in coming years, the above charts will be replicated in most national currencies, giving all of us chance to learn from the UK’s example.

 

Back to homepage

Leave a comment

Leave a comment