Safe haven proves its mettle: Gold soars in hours after Brexit - but experts say hold on to it for the long-term

London (Jun 26)  The value of gold soared more than 20 per cent in the hours that followed the Brexit vote in the UK – as investors scrambled for somewhere safe to put money due to concerns of a stock market meltdown. But does this mean we should join in the buying frenzy and pile into this precious metal?

Josh Saul, chief executive of bullion trader Pure Gold Company, sounds a note of caution over current gold fever – but still believes it is a great investment for long-term security.

He says: ‘A sense of panic and uncertainty has seen people buy gold – not just in Britain but right across the European Union. A lot of investors have been putting money into gold for the first time. However, people should not buy for short-term gain, but hold it as a long-term investment.’

Golden chance: Bullion is considered a safe investment in troubled times

Golden chance: Bullion is considered a safe investment in troubled times

Gold was trading at $1,260 per troy ounce on Thursday evening, at which point polls suggested the campaign to remain in the EU would enjoy a narrow win.

It was just a few hours later, when it became clear that we had voted to leave the EU, that the price had soared to about $1,350 an ounce – a six per cent jump.

And when the impact of a sliding pound against the dollar is factored in, the increase in the gold price for British buyers is more than 20 per cent.

Source: TheMoney.uk