InvestorQ : Will BREXIT lead to safe haven demand for gold as an asset class?
Archita Jajjoo made post

Will BREXIT lead to safe haven demand for gold as an asset class?

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vidhya Laxmi answered.
1 year ago
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That is extremely likely and it is in fact very likely to happen, based on the likely outcome of the BREXIT deal. One of the obvious outcomes of the BREXIT will be that there will be a spurt in volatility and uncertainty in the global financial markets. Bond markets will be confused about the likely interest rate direction globally. Equity investors are not sure what would be the combined impact of a slowdown in UK and the EU on global equity valuations. It is in these circumstances that gold normally emerges as a safe haven investment. Investors are normally more convinced with the value implicit in physical assets like gold rather than in paper assets like equities and bonds. That means gold prices could only get stronger from here.

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