Gold Bullion Sees UK Demand Rise On BREXIT “Nerves”

Gold bullion is seeing increased sales in the UK on BREXIT “nerves” according to Reuters today:

“Demand for bullion bars and coins is rising, with men and women of all ages buying up the safe-haven metal in case of a British exit from the European Union.

Mark O’Byrne, director of Dublin-based gold dealer Goldcore, said the price bounce had already driven a significant demand increase this year, with broader geopolitical concerns also feeding into the rise.

“In the coming weeks, we’re expecting to be busy,” he said. “The recent polls (on Brexit) are going to create more jitters… that should lead to quite robust demand as we run into polling day.”

Sales have picked up since the latest polls suggested that the ‘leave’ campaign is gaining support, with online polls by ICM and YouGov showing at the weekend it had taken a 4-5 percentage point lead ahead of the June 23 referendum.

Those looking to hedge against Brexit risk with gold can choose from a range of small investment products, from 1 gram bars for less than 50 pounds to kilobars priced at more than 28,000 pounds, bought over the counter or online.

Interest in gold has surged this year largely due to a reappraisal of the pace of U.S. interest rate rises, making it hard to pinpoint the impact of concerns about Brexit on prices

The biggest quarterly rally in nearly 30 years at the beginning of the year marked a turnaround in a three-year price slide for gold.

Sterling-denominated gold rose back above 900 pounds an ounce in March and remains up 18 percent this year.

A ‘leave’ vote would likely push it higher still. A Reuters poll of forex strategists indicated last week that the pound would sink 9 percent against the dollar if Britain quit the EU, boosting the price of gold in sterling terms.”

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