The inhabitants of the UK are surrounded. There’s no escape. Brexit is everywhere you turn. News broadcasts, front pages, dinner conversations, everywhere.1 Over three years (and counting) since the result, Brexit uncertainty remains a persistent part of the UK way of life and at the forefront of investors’ minds.2
As we noted in our Market Update in April, gold – in its role as a safe haven asset – has acted as a barometer of this uncertainty. Both European and UK gold-backed ETFs have seen stellar growth in AUM since 2016, with Brexit concerns an undeniable contributor. Since end-February 2016, when the referendum was announced, AUM in these products has increased by 260t to almost 560t, a 88% increase. UK AUM now accounts for just over a fifth of global total in tonnage terms, up from 15% at the start of 2016.