The Brexit Vote is Only the First Potential Domino to Fall

I think it’s an understatement to say that the upcoming Brexit vote involves adversaries with strong feelings, particularly in light of the murder of a pro-EU member of parliament. I also think it’s an abomination that the vote was not delayed, out of simple respect for the slain MP. On a global basis, the vote has sent investors running for safe harbor cover, driving gold prices to a three-year high already this week. There is no shortage of prognostications based on the outcome, so likewise, I’m happy to provide you with an opinion that you can take to the bank. Just follow my logic. If “remain” wins, people will feel somewhat encouraged to remain in stocks and other such investments. Gold on the other hand, may take a short term hit, but the overall market malaise has drawn greater attention to the many benefits of precious metals ownership, so any drop in the value of gold will quickly be driven back up by many who now see any drop in value as a “buying opportunity.” On the other hand, if the decision to “leave” the EU wins out, a global scramble will immediately ensue. Negative interest rates will become the norm, not the exception. Currencies across the board will devalue, the stock market will dry up in spite of any attempted central bank manipulations, and whatever limited global growth has been achieved will quickly reverse.

The world is in a very precarious position. Our global economic leaders have “manipulated” us into a corner with no way out. It’s no longer a question of if, but when. The only question remaining to be answered is, “which straw will finally break the camel’s back?” What event or combination of events will tip the scales enough to create the economic panic that is sure to come? Will it be a “leave” win by the Brexit vote, a bankruptcy declaration by another “too big to fail” bank, or will China successfully strong arm the IMF into reducing or replacing the Dollar as a world reserve currency? Yet these are only a handful of the critical situations at play in our economic world today.

The best protection from the coming economic meltdown is physical precious metal ownership. It’s the world’s only real money. It’s real money, to buy things when paper currency won’t and its appreciation during cataclysmic events is the best possible way to protect your assets. If you’re waiting to take protective action, because you need more concrete indications or some other sign to verify the inevitable collapse, then you’re destined to become a victim of the event, because once the panic begins, there’s absolutely nothing you can do to stop it or to improve your position.