How You Can Take Advantage of the Low Euro
For anyone considering a European tour this summer, things are looking pretty good right now.
As has been widely reported the euro has tumbled in value over the last several months. In fact many experts think it’s entirely possible that the currency may soon reach parity with the dollar for only the second time since its inception. At time of writing the value of a euro was around $1.06, and Deutsche Bank thinks it might bottom out somewhere around $.085.
Much of the change has been attributed to a weaker than average bond market as well as profound, structural concerns brought on by the prolonged Greek depression. While troubling for investors, the euro’s plummet is great news for vacationers. For 20 years the strong currency has bumped up the cost of Continental travel, but right now there’s a window of opportunity. Here are a few ways to take advantage of it, before the currency has a chance to climb back.
Start planning now
This one may seem like a nobrainer, but forethought is your friend. Start planning that summer vacation in March because markets are fickle things and prices can bounce unpredictably. Not only that but lots of people seeing these numbers are thinking the same thing: I’ve heard the French are quite attractive these days.
“Airfares will rise,” wrote Albert Herrera, senior vice president at travel network Virtuoso. “People will be clamoring to return to Europe. Summer will not be an easy time to visit, because everyone is thinking Europe is on sale so airfares will go up.”
About three months in advance is the right time to price airfare, so now’s the time to buy for early summer. As for the price of the euro, will it keep falling? Yes. No. Maybe. Nobody really knows. Maybe the structural weaknesses of the euro will keep driving this bus into a ditch. Maybe bullish investors will smell their chance to make a killing and push prices up on the currency markets. There’s no way to confidently tell.
What we know is this: one euro is a commodity just like any other, and right now it’s historically cheap. In fact…
Buy cash now
No, this is not a scam. We won’t try to buy or sell your gold and no one here has a bunker to lease. Unless you’re up after midnight this is not a late night infomercial. However, cash is a commodity that can be bought or sold like anything else. Withdrawing at an exchange rate is no different than buying euros for $1.06 apiece, and that’s a heck of a lot better than waiting for them to go back up to $1.29 again.
After all, if you’re headed to Europe, you will need those euros sooner or later. Why not get in on the fire sale?
The best strategy is to load up a pre-paid card like those offered by Visa and MasterCard. They come with many of the security features and functions of a debit card and can be used at any vendor or ATM on that network to pick