After a major Brexit at the end of June, the price of silver sky rocketed and the global markets started to panic. This week, we take a look at the effects of a major Brexit last month, and what it means for the future of gold and silver prices.
Many Britons felt that the new east Europeans immigrants held an unfair amount of housing, school places, and healthy services, and voted to leave the European Union. This caused the markets to lose about $2 trillion in value and the price of silver to hit a 21-month high. This was a major leap into the unknown, but many believe the British made the right choice. For more information, check out one of our previous blog post, The Silver Rise.
The Effects Last Month
After news spread about the Brexit, the markets took a major hit with a lost of $2 trillion, but shortly after the markets started to stabilize. The British sterling went down 13%, and the Euro went down from 1.30 euro to 1.19 euro, which is a low it hasn’t seen since the mid-1980’s. This has caused many investors to take advantage of the low prices of many stocks, and since many companies generate revenue over seas, this caused the markets to have a sharp contrast a week after the Brexit.
We saw this affect the price of silver as well, as it sky-rocketed to a 21-month high shortly after, but took a major dip on July 20th with a silver price of 19.60USD/ozt. This was short lived as the price of silver started to make drastic moves rising to 20.62USD/ozt the last week of July.
The future of the markets is still uncertain, but many believe that there is still concern about the impact the Brexit will have on the global markets. Many still believe that the UK economy will continue to grow, but slower than predicted in April.
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