Scotland Sees Rise in Gold Demand Amid Independence Vote

Gold demand in Scotland has increased dramatically in advance of the country's vote on a referendum for independence from England this Thursday.

Demand is up 91% compared to the same period last year. England and Wales have also seen recent rises in demand ahead of the election.

For the past 307 years Scotland has been a part of England. If the Scottish do gain independence, many think it could trigger a domino-effect across Europe with separatist groups in several countries expected to be reinvigorated in their own independence movements.

It is not yet known if the referendum will move forward since recent polls have shown conflicting results.

Marc O'Byrne, a director at GoldCore in Dublin stated, “With continued sterling volatility and uncertainty about the future of the pound in the short term and possibly for the foreseeable future, the Scottish independence question is a major macroeconomic and monetary risk to the U.K.. They are parking some money in gold due to concerns about the outcome of the Scottish referendum.”

BullionVault, a British online commodities trading service said that the number of Scotland-based users grew by more than 40% in the past month.

In advance of the vote, pro-union rallies have been staged in London and independence rallies have been ongoing in Scotland.

O'Byrne cites volatility and weakening of the pound as the primary reason behind the recent interest in gold, "Diversification of a percentage of one’s savings out of pounds and into gold will act as a hedge against currency volatility. It will also act as a store of value in an environment of depreciating currencies.”