As Brexit Looms And Stocks Plunging In October – Now May Be The Time To Invest In Gold

November 9, 2018

With Brexit around the corner and stock markets plunging in October – is now the time to invest in gold is asked by This Is Money this week. They kindly mention GoldCore as a leading “online bullion dealer” of physical gold (bars and coins) and informed their readers how “buyers can ask to have it stored, for a charge, or delivered”.

However, the primary focus of markets this week was the U.S. mid-term elections in which, largely as expected, the Democrats took the House and the Republicans held the Senate.

We looked at the outcome of the election and the ramifications for markets in the short term and more importantly the long term outlook for markets and the dollar in our latest video update on the “American Election” (click here or below).

Another important development this week was the return of ETF gold demand in a volatile October to compliment the already robust global demand seen in Q3, according to the latest World Gold Council research.

Gold coin and bar demand jumped 28% to 298.1t in Q3 as investors and store of value buyers took advantage of the lower gold price and sought protection against currency weakness and tumbling stock markets. Global gold ETFs and similar products rose in October by 16.5 tonnes(t) to 2,346t which was the equivalent to US$1.0bn in inflows.

The global gold repatriation trend continued with Venezuela back in the headlines in this regard as they struggled to get their hands on  the $550 million worth of Venezuelan gold stored in the Bank of England.

Investors globally are getting more concerned about Brexit and the risks it poses to UK banks and the UK economy to the point that some are engaging in a “Big Short” of UK banks (hint: Eisman) and UK investors and financial advisers are again looking at gold favourably.

All in all a busy and interesting week in markets and in the gold market and again there were more pros than cons.

From all the GoldCore team – have a great weekend!

Charts and Tables this Week

Source: USDebtClock.org

Source: Bloomberg

Source: Bloomberg

Source: Bloomberg

*********

Mark O'Byrne is executive and research director of www.GoldCore.com which he founded in 2003. GoldCore have become one of the leading gold brokers in the world and have over 4,000 clients in over 40 countries and with over $200 million in assets under management and storage.We offer mass affluent, HNW, UHNW and institutional investors including family offices, gold, silver, platinum and palladium bullion in London, Zurich, Singapore, Hong Kong, Dubai and Perth. 

Gold is the world’s oldest and most known currency.