Independence weekend we saw silver surpass many analysts’ predictions as it hit a 21-month high, while the European market plummet. According to reuters.com, the markets lost about $2 trillion in value after Britain decided to leave the European Union. This Brexit has crippled the global equities markets causing silver futures to be brighter than ever before.
Why did the people of the U.K. vote to leave the European Union?
In 1973, Britain joined the European Communities under a Tory government when the European economy seemed to be doing well. However, the next Labour government quickly held a referendum two years later and lost. The people of the UK saw the European Union as a beneficial asset, but since then has kept a close watch on what many call “the awkward partner”. What sparked recent events is the arrival of hundreds of thousands of east Europeans looking for jobs. Many Britons believe that they hold an unfair amount of the housing, school-places and health services that should go to Britons.
What does this mean for the markets?
It is still uncertain as to what this may mean for the markets, but many believe this will affect foreign exchange rates, as the Euro and pound may weaken. This may also cause investors to start converting all kinds of currencies into dollars, which will strengthen the dollar. This will make goods more expensive and less competitive in overseas markets.
Why buy silver?
While there is chaos in the markets, gold and silver may be the last currencies standing. Gold and silver reached their highest in about two years, and this turmoil in the markets could take the metal to a three year high. The silver price of silver bars, such as our 10 Oz New Royal Canadian Mint Silver Bar, and silver coins will be worth more in the upcoming months. Find out more about this product and others on our main site.
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Do you think the UK made the right decision? Comment below and tell us what you think!
Image Sources: pixabay.com, wired.com