The Appointment of Jean-Claude Juncker as president of the European Commission Points to the Exit for the UK
Jean-Claude Juncker is known to be a Federalist who wants most things centralized and is in favour of a pan European army, legislation and tax collection. This is a disaster for the British Prime Minister, David Cameron who had hoped to secure a better deal for Britain prior to holding a referendum on whether or not the UK should remain in the EU. The appointment of a centralist to the position of European Commissioner by a majority says it all; Britain has to grin and bear it.
This blow comes hard on the heels of the European Parliamentary elections in which the United Kingdom Independence Party (UKIP) took first place with their 'Out of Europe' campaign. Across the English Channel the French nationalists took first place in the form of the Front National. It beggars belief that the political elite cannot see that the writing is on the wall, after years of austerity and high unemployment the people have had a guts full and are actively voting for change.
Should the UK leave the EU there will be ramifications for the both the Euro and the British pound. The uncertainty that will surround both currencies could see investors moving their funds to a more stable place. This could be via another currency or into the stock market or even into gold and silver.
It is a double edged sword as the dollar may be the main beneficiary and that in turn would put pressure on the price of precious metals when measured in dollar terms.
Time will tell, but it appears to us that we are in for a period of rapid change all across the globe, so hold on to your hats.
The miners have started 2014 very well indeed on the back of rising gold prices, so the question is; is this the real deal or another head fake? Is the bottom really in? Could there be a final capitulation just ahead of us? Will the summer doldrums take the PMs lower?
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