Is This The End Of Eurozone?

The Eurozone was created in 1999 with the purpose of adhering to a common currency that was supposed to help the economic, commercial and social connections between the 17 members. The member countries adopted not only the same currency but also the same legal tender turning the Eurozone into a monetary and economic union. After more than two decades the European leaders fear that the Eurozone is coming to an end and that maintaining the common currency is no longer a wise thing. Moreover, many of the countries which adhered to the Eurozone suffered so much that it is no longer safe for them to have the Euro as currency.

These recent problems became more stringent each day for the past years. European leaders and not only started to worry that maybe keeping the Eurozone alive is not such a good idea. The fact is that any trouble in this area can affect the global economy at its macro level with a reflection in the life of all people.

The crash of the Eurozone can have many causes, but the most important one is the accumulation of the sovereign debts that most member countries contracted. Many of them found themselves in the impossibility to pay back what they own which led to additional loans. Greece is probably the most relevant example and only the new loan managed to postpone its default. Because of the current situation some analysts compare the Eurozone with an ill patient that needs treatment otherwise he will die.

Speculations have been widely made in the last years whether the Eurozone can last for more. Some speculated with the purpose of making this dissolution take place even faster. This is because they believed they could make money out of this situation. The truth is that in cases like this there are some who always win either if they choose the correct path or the wrong one. Because of that there are times when the Euro is attacked without any reason at all.

Investors fear that they can lose everything they own these days. And they are right to do so because keeping the wealth in money is no longer safe. Some do not even trust the banks in spite of their promises that everything is OK. In the end the Euro is just a piece of paper with no intrinsic value at all. On the other hand, there are the wise investors who choose hard assets with intrinsic value like gold or other precious metals. They say that buying gold is the only safe investment these days.

In times of recession buying gold is the best measure of financial protection.