E-Scrap News

A silver (and gold) lining in the Brexit vote

Brexit / nito, ShutterstockIn a perverse manner, processors of obsolete electronics love stock market slumps because such phenomena can push up the value of precious metals.

It’s little surprise then that the recent decline in equity values caused by British voters is bringing smiles to some recycling executives.

When stock prices decline, investors hunt for better investment opportunities. This flight to safety typically generates increases in precious metals prices as investors sell equities to invest in gold, silver, palladium and other metals.

This rush to metals investment happened once again in the past few weeks as global stock markets reacted to the news that Britain will withdraw from the European Union.

This investment action is important to electronics recycling firms because of the amount of precious metals found inside computers, mobile phones and other obsolete devices.

The precious-metals investment interest as a result of the Brexit vote pushed prices up dramatically. Silver’s value this week reached a two-year high at more than $21 per troy ounce and gold also notched a two-year high at nearly $1,370 per ounce. The value of palladium is up 12 percent since the Brexit vote and is now sitting at over $610 per ounce.

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