Millions of Scots will take part in Thursday’s referendum to either succeed from Great Britain and become an independent country or to continue the status quo. If Scotland does successfully part from the 300-year-old union then Scots will get to keep 90 percent of its oil revenues, pay only eight percent of the national debt and use the pound sterling, though it still has to keep the Queen and her royal Balmoral estate.
Regional economists, officials and pundits argue that it would be a terrible move for Scotland to move away from Great Britain, averring that Scotland will be in dire straits if it can’t rely on the sound foundation of the United Kingdom. They also say that it would create disruptions in both of the nations’ economies
Those investors who are concerned about Scotland independence are beginning to consume gold.
According to the latest data from BullionVault, the number of gold orders from Scottish consumers has spiked this month nearly 40 percent more than compared to the same time last year.
Experts allude to the fact that there is definitely a correlation between the referendum and gold purchases as opposed to the crisis in the Middle East and Eastern Europe.
“It would not be enough to say increased Scottish activity during September suggested a link to the referendum as there is always an uptick in trading at this time of year,” said Adrian Ash, head of research at BullionVault, in an interview with the London Telegraph. “But our numbers show that as a proportion of overall UK trading, the activity by Scottish investors is proportionately much higher at the moment.”
BullionVault Director Daniel Marburger added: “Our August and September UK gold sales are already up by 20pc when compared to the same period in June and July this year and there are still two weeks to go until the end of September. Sales of silver in August are also up by more than 25pc. Given that global uncertainty in the Middle East and the Ukraine does not seem to have had a significant impact on gold and silver demand in the rest of our markets over the last two months, we believe that Thursday’s referendum for Scottish independence has had a notable effect on demand in the UK.”
Other investors, meanwhile, are taking their money completely out of Scotland and parking it in a safer destination. The reason for this is there have been some reports over the past week that a sovereign Scottish government would control asset flows, though many have dismissed these rumors because Scotland wouldn’t be entirely independent until Mar. 24, 2016.
Until then, Scotland will still be under the rule of Great Britain and must follow its laws.
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