Whatever Britons decide, bet on gold’s volatility to profit

Golden era: SocGen expects gold prices to surge in the event of a Brexit. – Reuters

SINGAPORE: Societe Generale SA has come up with a way for investors to profit from the UK’s referendum on whether to remain in the European Union (EU) whatever the outcome: bet on a jump in gold volatility.

Swings in bullion should increase whether voters choose to remain in or sever ties with the world’s largest trading bloc, according to a note from the bank that lays out trading strategies. Investors could go long on a so-called gold-variance swap, which gains in value as volatility increases, Mark Keenan, head of commodities research for Asia, told Bloomberg Television.