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Holly's Blog: Buy gold and drink gin

11 July, 2017

A journalist for a leading paper asked me for comment this week how to prepare our investments for a potential no-deal Brexit. My immediate gloomy response was “Buy gold. Drink gin.” To say that I really don’t know would not make for great copy.

Consumers are still splashing the cash

Stronger markets this week as US data confirmed that consumers are still splashing the cash and domestic spending is solid. All financial eyes are on the Fed boss Powell today, as he gives a speech which will indicate his views on future interest rate moves. Things feel mercurial right now. We bounce from one short-term piece of data or news to the next, and prices yo-yo around. In truth I don’t think anyone knows what’s going to happen next. A journalist for a leading paper asked me for comment this week on how to prepare our investments for a potential no-deal Brexit. My immediate gloomy response was “Buy gold. Drink gin.” To say that I really don’t know would not make for great copy.

Gold: a safe haven investment

More people have looked to gold which has always been a safe haven investment. When the world goes weird, people like having an investment which you can see, touch and notionally hide under the bed. An ounce of gold a year ago cost about £920. It’s nearer £1,250 today. Although you’re arguably a little late to the party, if things get bleaker and more uncertain, gold should rally. If however, the US suggest that more interest rate cuts lie ahead, then this is seen as stimulating companies to make and consumers to buy. Traders shout ‘whoopee’, share prices rise, everyone feels a bit cockier and received wisdom is that ‘safe old’ gold will fall in price.

If you are interested in having some of your money in gold, you can buy precious metals on The Royal Mint’s website. Not the snappiest digital experience but I will forgive them, as I’m sure their vaults are safer than my house! Check out the Signature range – I set up a test account with £100 a little over a year ago, and there’s £132 there today.

We’ll be taking a break next week and normal blog service will resume when we’re all back to school in September.

Have a great Bank Holiday weekend. I was going to visit my parents. I told Mum that I wanted to buy Dad. She told me not to be absurd. So I cancelled my visit and took to Twitter in protest...

Holly