{"id":17481,"date":"2016-07-06T15:06:01","date_gmt":"2016-07-06T22:06:01","guid":{"rendered":"https:\/\/goldcopreciousmetals.com\/?p=17481"},"modified":"2026-01-19T11:59:34","modified_gmt":"2026-01-19T19:59:34","slug":"what-if-the-euro-crashes","status":"publish","type":"post","link":"https:\/\/goldco.com\/what-if-the-euro-crashes\/","title":{"rendered":"The Death of the Euro"},"content":{"rendered":"<p>On June 23 the UK elected to abandon the European Union (EU) in what can be characterized as a 52% to 48% squeaker. Emotional reactions to the event have ranged from giddy triumph in more rural, traditional areas to stunned disbelief in London.<\/p>\n<p>Political figures differ too on the significance of the vote. Former London Mayor and Brexit champion Boris Johnson <a href=\"http:\/\/www.independent.co.uk\/news\/uk\/politics\/boris-johnson-brexit-hysteria-compares-princess-diana-death-reaction-eu-referendum-gove-tory-a7118401.html\" target=\"_blank\" rel=\"noopener noreferrer\">dismissed<\/a> the \u201cremain\u201d group\u2019s fears over the economic and political consequences as \u201chysteria,\u201d while <a href=\"http:\/\/fortune.com\/2016\/06\/24\/brexit-germany-reaction\/\" target=\"_blank\" rel=\"noopener noreferrer\">German Chancellor Angela Merkel<\/a> expressed \u201cdeep regret\u201d over the move.<\/p>\n<p>But no doubt Jim Mellon, chairman of Burnbrae Group, a private equity and venture capital firm, has voiced the most <a href=\"http:\/\/www.cnbc.com\/2016\/06\/24\/after-brexit-the-euro-is-gone-within-three-to-five-years-one-expert-says.html\" target=\"_blank\" rel=\"noopener noreferrer\">alarming take<\/a> yet.\u00a0 He claims the euro, the currency used by 19 of the EU\u2019s remaining 28 member countries, almost <a href=\"https:\/\/european-union.europa.eu\/institutions-law-budget\/euro\/countries-using-euro_en\" target=\"_blank\" rel=\"noopener noreferrer\">340 million<\/a> individuals daily, is \u201cunsustainable,\u201d\u00a0 and will likely collapse within five years, perhaps sooner.<\/p>\n<p>After the dollar, the euro is the second largest reserve currency and the second most traded currency in the world. \u00a0If Mellon&#8217;s correct in his projection, an end to the currency would cause serious global ramifications and, worryingly, those damaging repercussions will inevitably reach into the U.S. economy.<\/p>\n<p>According to <a href=\"http:\/\/www.bankrate.com\/finance\/investing\/what-if-the-euro-fails-1.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">James Sagner<\/a>, associate professor in the School of Business at the University of Bridgeport, Connecticut,\u00a0\u201cThe most common currency for transactions between U.S. and European businesses is the dollar\u2026.But the euro is a close second, and that leaves anyone doing business with Europe very exposed.&#8221;<\/p>\n<p>Werner Bonadurer, a clinical professor of finance at the W.P. Carey School of Business at Arizona State University, takes the scenario even further. If the euro were to collapse altogether, <a href=\"http:\/\/www.bankrate.com\/finance\/investing\/what-if-the-euro-fails-1.aspx\" target=\"_blank\" rel=\"noopener noreferrer\">he envisions<\/a> a \u201cmultiyear\u201d depression in Europe, and a recession lasting several years in the U.S.<\/p>\n<p>Here in the States, we kid ourselves if we think we\u2019re insulated from the effects of the euro, or somehow protected by the dollar. It\u2019s all fiat currency, and as such its value entirely depends on circumstances far outside our control. Completely <em>un<\/em>-coincidentally we read more every day about how post-Brexit investors are flocking to gold as a safe haven\u2014an attempt to protect <em>our<\/em> worthless fiat currency from <em>their <\/em>worthless fiat currency.<\/p>\n<p>Clearly gold has been a beneficiary of Brexit, surging twenty-five percent since the beginning of January. (While the breakaway itself from the EU officially occurred on June 23, Brexit talk had been in the air for months.)<\/p>\n<p>The question remains: if the euro continues to weaken, will you continue to rely on stocks, bonds and other dollar-denominated investments? Although you shouldn\u2019t panic, it\u2019s wise to think the unthinkable and to assess your nest egg\u2019s vulnerability to destructive forces that can gut your portfolio, and your retirement.<\/p>\n<p>The question you need to ask yourself is <em>why<\/em> are investors around the world rushing to get gold?\u00a0 Because gold\u2019s value can\u2019t be destroyed by disaffected British voters, workers in China, criminals on Wall St. or even everyday inflation\u2019s erosion of your dollar\u2019s buying power.<\/p>\n<p>As professional investors look into even the short-term future they\u2019re seeing currency collapses, negative interest rates, quantitative easing and other central bank flails and misfires\u2014and they want to protect their wealth. They know <a href=\"https:\/\/goldco.com\/precious-metals-ira\/gold-ira\">gold will hold onto<\/a> its value long after the euro, or any other fiat currency, becomes a mere souvenir.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Could we be seeing the end of the world&#8217;s second most traded currency? One expert says yes, and the contagion will spread fast.<\/p>\n","protected":false},"author":13,"featured_media":32524,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[207],"tags":[723,275,724,467,725,241],"class_list":["post-17481","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-buying-power","tag-dollar","tag-euro","tag-europe","tag-james-sagner","tag-recession"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.8 (Yoast SEO v26.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>The Death of the Euro<\/title>\n<meta name=\"description\" content=\"Could we be seeing the end of the world&#039;s second most traded currency? One expert says yes, and the contagion will spread fast.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/goldco.com\/what-if-the-euro-crashes\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Death of the Euro &#8211; Goldco\" \/>\n<meta property=\"og:description\" content=\"Could we be seeing the end of the world&#039;s second most traded currency? One expert says yes, and the contagion will spread fast.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/goldco.com\/what-if-the-euro-crashes\/\" \/>\n<meta property=\"og:site_name\" content=\"Goldco\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/goldcopreciousmetals\" \/>\n<meta property=\"article:published_time\" content=\"2016-07-06T22:06:01+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2026-01-19T19:59:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Greece-Euro-855x570-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"855\" \/>\n\t<meta property=\"og:image:height\" content=\"570\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Paul-Martin Foss\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@GoldcoPM\" \/>\n<meta name=\"twitter:site\" content=\"@GoldcoPM\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Paul-Martin Foss\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/goldco.com\/what-if-the-euro-crashes\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/goldco.com\/what-if-the-euro-crashes\/\"},\"author\":{\"name\":\"Paul-Martin Foss\",\"@id\":\"https:\/\/goldco.com\/#\/schema\/person\/58e0d6d6a6a1f8500ce9a0d8e83c1ada\"},\"headline\":\"The Death of the Euro\",\"datePublished\":\"2016-07-06T22:06:01+00:00\",\"dateModified\":\"2026-01-19T19:59:34+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/goldco.com\/what-if-the-euro-crashes\/\"},\"wordCount\":555,\"commentCount\":2,\"publisher\":{\"@id\":\"https:\/\/goldco.com\/#organization\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/what-if-the-euro-crashes\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Greece-Euro-855x570-1.jpg\",\"keywords\":[\"buying power\",\"dollar\",\"Euro\",\"Europe\",\"James Sagner\",\"recession\"],\"articleSection\":[\"Economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/goldco.com\/what-if-the-euro-crashes\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/goldco.com\/what-if-the-euro-crashes\/\",\"url\":\"https:\/\/goldco.com\/what-if-the-euro-crashes\/\",\"name\":\"The Death of the Euro\",\"isPartOf\":{\"@id\":\"https:\/\/goldco.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/goldco.com\/what-if-the-euro-crashes\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/goldco.com\/what-if-the-euro-crashes\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/goldco.com\/wp-content\/uploads\/2020\/04\/Greece-Euro-855x570-1.jpg\",\"datePublished\":\"2016-07-06T22:06:01+00:00\",\"dateModified\":\"2026-01-19T19:59:34+00:00\",\"description\":\"Could we be seeing the end of the world's second most traded currency? 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