Every day we hear of new uncertainties with the Brexit negotiations - which have not even started yet. Even a medium hard Brexit looks as though it will give the UK a bumpy ride particularly given the fact that any one of 26 countries could for their own reasons veto any deal. On top of this is the prospect of an unpredictable Trump 4 years.
This seems to be an example where caution should be exercised and this might mean physical gold - Krugerrands or, somewhat easier, Ishares Physical Gold ETC (SGLN).
The demand for physical gold seems to be high due to sovereign demand, led by Russia and China I believe. Perhaps this is why the price of gold has remained strong during this equity bull run, even with the prospect of a further Fed rate hike and therefore, stronger dollar. Add to that, Brexit, Trump and EU elections create a lot of uncertainty for which gold might be a good hedge.
Rather than betting on the price of gold, I hold a number of gold miners - ones which are profitable at a lower price than current gold price and typically are on low PERs and (except one) pay a decent dividend. I'm no expert in this area, so it may or may not be a successful strategy.
