• seperator

What happens next?

Today is not a day of numismatic significance, but it might become one if the British people vote to leave the European Union.

Whether the advantages of staying, or risks of leaving the EU win the political argument, I cannot say. I have no special insight to offer.

However, if Britain does vote to leave the EU, it will have a strong impact on the financial markets as what comes next will be on the minds of every money manager and investor.

What happens to the price of gold and silver? Some forecasters say the sky’s the limit.

What happens to the pound-dollar exchange rate?

What happens to interest rates?

Perhaps everything possibility has already been built into current prices – but I would not bet on it.

Swings in the price of bullion always affect the numismatic marketplace. Investors crowd in, or panic out. Dealer cash flow moves up or declines. We’ll see.

Come late September and early October, if the pound has declined against the dollar by a large amount, there will be a lot of outside dealers flying into the United Kingdom for the coin shows and auctions that are held in London at that time of year.

Those then going will be trying to take advantage of the weak pound to get deals.

Interest rates? Well, interest rates affect everything else.

While a vote today to remain in the EU will likely not lead to the creation of a coin to mark a future anniversary, a vote today to leave very easily could turn into a future commemorative coin.

What exactly will be commemorated will depend on whether the separation goes well or goes badly.

So for U.S. collectors, today will be a bit like watching for a tsunami after a potential earthquake far, far away..

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