Gold may stand at the start of a major bull market should the U.K.’s Brexit vote prove to be a forerunner of greater political and financial instability around the world, according to Evolution Mining Ltd.’s Jake Klein, a veteran of more than 20 years in the industry.
With the rise in uncertainty, investors are coming back to the market, the executive chairman of Australia’s second-biggest producer said in an interview with Bloomberg Television. “It is an alternate currency, it’s performed that role” as a haven for over 2,000 years, he said.
Gold has soared after the U.K.’s vote last week to quit the European Union as investors seek a haven from financial turmoil and contemplate the possible implications. The vote threatens to fragment the world’s largest trading bloc should Britain withdraw, while also calling into question the future of the United Kingdom, with the possibility of Scottish independence. Former Federal Reserve Chairman Alan Greenspan said Northern Ireland may also break away.
“I guess to me, the most interesting thing is: are we seeing the first fault lines of a major correction and change in the financial and political systems?” he said. “If that’s the case, then we could very well be at the early stages of a major bull market.”