Brexit and Trump Election Panic: Going for the Gold

BrexitThe year 2016 had many investors and financial analysts buzzing about the future of gold, with many thinking that future was very bright. Two major events happened that year that many predicted would be a serious driver of gold prices: Brexit and the Trump election.
 
Brexit — the decision by the United Kingdom to leave the European Union — shocked the world and even left many residents of the U.K. flabbergasted. Those who were against it could not understand why Britain would want to leave the economic security of the European Union, and even many who voted for it were surprised and even concerned that the referendum to leave had actually passed.
 
As shocked as the world and half of Britain was by Brexit, the world and half of America were equally shocked by the election of Donald Trump for President of the United States over Hillary Clinton. Trump, the least-qualified man ever to run for President in terms of political experience, went up against Clinton, who, as a former First Lady, U.S. Senator and Secretary of State, had probably the most impressive Presidential candidate resume in recent history.
 
Trump, riding a “populist” movement despite being a billionaire with no history of public service, won the day. The polls and most pundits predicted Trump would prove little threat to Clinton, so his victory turned the world on its ear.
 
The Predictions
 
Some people thought these bold moves might embolden a new entrepreneurial spirit and inspire confidence in the stock market, potentially hurting the value of gold, but most suspected the opposite: That the inherent uncertainty of these two events would send people running into the secure arms of gold.
 
The Effects of Brexit and Trump on Gold
 
So far, it looks like the latter group was right on the money. Over 2016, demand for gold increased by two percent, representing 92.9 tons, bringing gold to a three-year-high of 4,308.7 tons. With an added 532 tons, it was the second-best year ever for ETF inflows, according to the latest Gold Demand Trends report.
 
By September of 2016, gold had jumped 25 percent. It settled down a bit, but still finished up 8 percent on the year, thrilling savvy gold investors who were confident that betting on gold was the right play in this new, uncertain world.
 
Another great sign was that demand from China for gold rose as well — as high as 25 percent — in response to the weakening of their own currency, the yuan, against the dollar.
 
The Future of Gold in the Post-Brexit/Trump Universe
 
The full effects of Brexit and the Trump election have not even gotten close to being felt yet. Britain is not even officially scheduled to leave the European Union until 2019, and in only a few months as President, Trump has upset several world leaders, bombed Syria and some think may be pushing America to the brink of war with North Korea.
If there ever was a time of great uncertainty in the world, this is it — and gold is reflecting that truth. Gold prices are up 5.29 percent since the beginning of 2017 and recently hit an 11-week high. While some market corrections may be in store, the future of gold does look very bright indeed.
 
Investing in the Future With Gold and Fortress Gold Group
 
It’s not too late to get in on the benefits of owning gold. Fortress Gold Group, the #1 Gold Firm in America according to the Inc. 500, can help. To learn more about investing in gold, request our FREE guide of Fortress Gold Group today at 800-777-6177.

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