Gold is the best hedge against a UK Labour government

This is a warning for all Brits and foreign holders of sterling and gilts. On 4 July, we will see a Labour government with a clear majority to rule with socialistic malice.

I happen to think that Labour’s predicted landslide won’t be as great as the polls suggest. But it is almost certain that Labour will have a significant majority. What is not understood by foreign holders of sterling is the consequences, because Starmer (undoubtedly the next Prime Minister) has been careful to align himself with the EU social democratic model, with which international investors are accustomed. But Britain is not European in that coalitions between political parties are rare. The UK Parliament has two sides, and when Labour has a clear majority, it is vulnerable to left-wing pressure and from the unions.

Socialist Labour sees the private sector as little more than a source of revenue, to be tolerated despite it creating wealth for the middle classes. It will tax that wealth away on ideological grounds, just as it wants to close down private sector education by charging VAT on school fees.