Brexit, economic instability and investments

[dhusky Senior Member Find all posts View Profile Close dhusky]

Given the Brexit in the UK and the drive that a few other nations (France, Holland and Italy) to also leave the Euro I'm curious about how this will drive market uncertainty and this could be the "straw that breaks the camel's back I'm curious about whether I should cash in some assets or whether I should wait and see if they go up in value. What are your thoughts about this from previous events (I was only 14 during the 2008 crash)?

As fate would have it I am a stone collector in my spare time (I get stones that are scrapped from jewelry) and some of them could be worth quite a bit (I have like 3-4 carats of a stone called alexandrite). I'm unsure if I should sell them or cash them in. What were your experiences from the 87' crash, the 00' crash and the 07' crash? Do you see similarities in that market and today in post QE America?

[CUSP82 Administrator Admin of the Month Dec 2014PEGym Hero Find all posts View Profile Close CUSP82]

Don't do anything and wait a year. The world will still be here.

[Jackxxx Banned Find all posts View Profile Close Jackxxx]

I thought you were talking about stocks. If its stones or gold, or silver, don't worry about it. What we are seeing right now in the market is just an emotional reaction. It will readjust in the next few days.

[Jaewonlee Senior Member Find all posts View Profile Close Jaewonlee]

I have a lot of my money tied up in the stock market and it hurts. I think Brexit will start the next GFC. Not good times

[Pegasus AdministratorPE Gym EditorPEGym Hero ☺ Admin of the Month Mar 2015 Find all posts View Profile Close Pegasus]

I thought you were talking about stocks. If its stones or gold, or silver, don't worry about it. What we are seeing right now in the market is just an emotional reaction. It will readjust in the next few days.

The market may take more than a few days Uk stocks particularly. This will have an effect throughout Europe over the next few years. The effect on none euro markets is a bit of an unknown at this point .

[Zman007 Senior Member Find all posts View Profile Close Zman007]

The markets definitely took a hit. Currently the Dow is down 611, more than the projected 500. It'll stabilize, but may take a while to do so and the long term affects on world markets is yet unknown.

definitely do not sell now, wait, the market will come back in part or in full shortly.

[WIItard Senior Member Find all posts View Profile Close WIItard]

I traded through the tech bubble, housing bubble and yes the world is over due for a recession. I think Trump will be voted in as US president which will cause more downward pressure on stocks etc. That said usually gold and silver go up into bad economic conditions or uncertainty but gems are a whole different matter. Gem stones are more a luxury that aren't usually used as an asset but when gold spiked to about $2000 an ounce money started heading into uncut diamonds, not sure about other gem stones?

Short answer is I doubt it will make a difference right now if you sell them or not.

Personally I would sell the gems and buy silver. Silver was in an uptrend before all this happened. Depends what currency you are buying in. You can use gold and silver as a currency trade as well. Let say you buy silver with euro's and the euro drops 10%, even if it stays at the same US price it will be 10% gain if you sell it in euro's. Make sense?

[TheAnimal220 Senior Member Find all posts View Profile Close TheAnimal220]

Metals like gold and silver are usually a pretty safe bet in economically unsure times.

Are you looking to invest, make money or conserve capital? There's a difference between the three.

[kickinthemebs Senior Member Member of the Month Feb 2014 Find all posts View Profile Close kickinthemebs]

Over here savings accounts are at an all time low (like 0.5% per annum - then 40% of that is taxed!). So how would you go about investing in gold or silver? How do you know what to do without losing a lot of money? Are you guys experienced in it, and how much have you made off it ?

[closed260 Senior Member Find all posts View Profile Close closed260]

Not to say it isn't worth continuing to look into, but the time to invest in metals was before the vote. It's my super uneducated opinion that the worst of the currency value drop is over. I mean come on, it's not like the UK decided to stop using electricity and go full Amish.

Only invest in metals now if you believe the Pound will continue to fall.

I think that long term, the EU will be forced to syncronize laws/economies further to entice UK back into the fold. After all, in the long run, trade turns into unions and the UK trades mostly with europe.

[Dangler Senior Administrator☼ Wizard ☼ White Tiger Award 2015 Find all posts View Profile Close Dangler]

Stay diversified.
Buy Low, sell high.
Hold the good performers.
At times, harvest some losses, use them to offset taxable gains.
Exaggerated moves in security prices are normal.
Markets Inhale and Exhale, keep that as part of your investment strategy.

[TheAnimal220 Senior Member Find all posts View Profile Close TheAnimal220]

Not to say it isn't worth continuing to look into, but the time to invest in metals was before the vote. It's my super uneducated opinion that the worst of the currency value drop is over. I mean come on, it's not like the UK decided to stop using electricity and go full Amish.

Only invest in metals now if you believe the Pound will continue to fall.

I think that long term, the EU will be forced to syncronize laws/economies further to entice UK back into the fold. After all, in the long run, trade turns into unions and the UK trades mostly with europe.

Value of metals isn't dependant on just the pound value drop. Far from it. The Brexit could be a catalyst for absolutely catastrophic economic events in the (far) future.

The 2008 recession was facilitated by a gargantuan real-estate bubble. Well, currently the global economy is floating on an ocean of massively inflated debt. Once this bubble pops (and it will, as does every bubble) the consequences will be exponentially more severe than in 2008. Because at that point, we can't solve the problems the way we always have; by turning on the presses.

Investing in precious metals is still a very smart thing to do. Making quick money should not be so much the point with this. I invest in gold to protect my capital. I trade the foreign exchange to make money.

[master-gauge Senior Member Member of the Month May 2016 Find all posts View Profile Close master-gauge]

It was reported the day after the vote here (what I caught walking by the TV), everything dropped to '08 levels in stock.. I thought they said the pound hadn't been that low in 30 years.. But I did catch them say that gold actually went up $25 USD..

Out of all the investments gold is really king, it has seen people thru some tuff economic times in the past.. I do see a bounce back someday, just don't expect that over night.. The main thing right now is not to panic, and hang on.. It's hard to stomach for some, but it's necessary.. It could take a few years to break even...

If they could have free'r trading of goods between the individual Euro countries and keep the people traffic (refugees in check) there would be no need for the EU at all.. The main reason the vote went the way it did was because of the refugees coming into, and Britain having no control of it..

With trump possibly getting in, and the UK on it's own again it really is the perfect storm for some sort of economic upheaval collapse because of speculation, it can drive the market and it can screw the market.. And that may cause some civil unrest if bad enough..

To answer Mebs, I know what u mean.. Here in the land of the Beaver , they keep telling the Millennials group to "save now for your retirement".. What a crock.. That is a very hilarious statement.. How!?? Most work at cr*ppy minimum wage jobs because they were told to go get into massive debt at University for a degree that means nothing.. 30hrs is a good week for some, taxes are thru the roof (I live in a very high tax region myself).. and there hours are cut continuously!! The economist here have there head where there is no sun shine!!

I don't fall into this crowd, but I fought my way to the finish line, well almost.. Even people with decent jobs can't save..

[TheAnimal220 Senior Member Find all posts View Profile Close TheAnimal220]

To answer Mebs, I know what u mean.. Here in the land of the Beaver , they keep telling the Millennials group to "save now for your retirement".. What a crock.. That is a very hilarious statement.. How!?? Most work at cr*ppy minimum wage jobs because they were told to go get into massive debt at University for a degree that means nothing.. 30hrs is a good week for some, taxes are thru the roof (I live in a very high tax region myself).. and there hours are cut continuously!! The economist here have there head where there is no sun shine!!

I don't fall into this crowd, but I fought my way to the finish line, well almost.. Even people with decent jobs can't save..

I know of some peope with very good degrees who are still waiting tables 4-5 years out of college and living with their parents... How are they going to pay off 50+ grand in debt? Then they have to get into more debt to 'buy' a house and work to pay that off for the rest of their lives.

[master-gauge Senior Member Member of the Month May 2016 Find all posts View Profile Close master-gauge]

^^^ That's exactly what it would cost me to get the engineering degree and that is for 2 yrs.. I have the 2 yr trade portion of school, so that counts.. I'm not going in debt to make less money, even if doing the engineering work I would still make less.. And would I get a job went I came out??? Nope, same bout as I'm in now..

I'm at home right now, I came back after living away for 6 years after HS, then I was trapped by an apprenticeship.. It has been dragging on and on because of the lack of work for hrs.. I'm close to the end and cannot wait.. I have people come up to me and tell me to quit and do something else, but they have not a clue what was invested into it as far as time in the books is concerned.. When completed, I will be able to do anything I want including my own company... It's a dream now, but I hope soon it will be..