Date Posted: 05-07-2016
Following the EU referendum on the 23rd of June and the subsequent Brexit vote which has divided the nation, we have now entered a period of uncertainty.
There have been plenty of claims flying around the media about what will happen to the UK and its economy following the decision to leave. In the immediate aftermath, the value of the pound sterling sunk to the lowest levels seen since 1985 and has continued to fluctuate since.
Although we have seen some improvements in the value of the pound, investors are already taking steps to protect themselves in the uncertain market. While all eyes were on the value of the pound, gold prices actually began to rise seeing a 6% increase (20% if you take into consideration the pound fluctuations during that time). Many investors saw this as a chance to store their wealth in luxury assets which can then see a long term return on investments when the pound has stabilised. This includes buying up gold, art and even classics cars.
At the first major auction to take place after the referendum results, a 1938 Jaguar Roadster sold for more than £80,000 higher than its upper valuation estimate due to competition between investors and dealers. A similar theme emerged during the 2008 financial crisis where sales of fine art decreased significantly less than other markets.
Luxury markets tend to suffer less during these times due to their investment potential and, particularly relevant at the moment is the ability to trade internationally in luxury items and not just within the EU. So, despite the uncertainty we are currently facing, there seems to be quite literally a silver lining.
If you’ve invested in luxury items over the past few weeks and are looking for somewhere secure to store them, a safe deposit box can offer you the peace of mind you are looking for. Offering a number of sizes perfect for storing a range of valuable items, The Safe Deposit Centre in Manchester offers the best value boxes in the North West.