‘Staggering’ uncertainty driving gold – World Gold Council – by Martin Creamer (MiningWeekly.com – June 24, 2016)


JOHANNESBURG (miningweekly.com) – With Britain voting to exit the European Union (EU), the World Gold Council expects to see strong and sustained inflows into the gold market driven by the “staggering” level of protracted uncertainty that investors now face. The council said on Friday that gold’s surge to $1 313.85/oz was providing investors with a much-needed safe haven.

At the same time, the British pound had fallen to a 31-year low and world equity markets had plummeted. Sharps Pixley saw its busiest day ever with online sales draining stocks of larger bullion bars and prompting the gold trader to call on emergency reserves of kilobars from Germany.

Its stocks of many coins had also been bought out. Sharps Pixley CEO Ross Norman emphasised gold’s wealth preservation properties and said the precious metal was protecting investors against currency weakness and political uncertainty.

The Bank of England was standing ready to take whatever action was necessary, a mantra likely to be repeated by other central banks.

Interest rates were expected move further into negative territory, which would be another positive for gold, the World Gold Council said in its release to Creamer Media’s Mining Weekly Online.

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