The election farce will drive the £ down and gilt yields up!

Almost certainly, this botched general election is turning into a political and economic catastrophe. It’s a golden opportunity for Brits to buy gold with a 25%—30% upside.

Looking at sterling’s long-term trend against the dollar we see three phases: enormous instability until the 1990s, a rally into 2008, and then a continuing decline ever since. It is this last phase which sets the tone for sterling’s outlook — all it needs is a push over the edge for it to take out forty-year lows. And the general election next month might just provide it.