Dave
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Silver
Been hearing talk, again, about Mexico monetizing silver. Can anyone confirm if this will happen, and when?
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Packoderm
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You mean silver content in coins or silver currency notes. I do know that the 20 and 50 peso coins contain silver.
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Dave
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| Quote: | Originally posted by Packoderm
You mean silver content in coins or silver currency notes. I do know that the 20 and 50 peso coins contain silver. |
I'm talking silver coin. The Mexico mint currently produces a pure silver coin but without stated monetary value.
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Packoderm
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The silver colored center part of all 20 and 50 Mexican peso coins contain 92.5% (1/4 and 1/2 oz. respectively) silver. The commemorative coins have
the same silver content.
http://en.wikipedia.org/wiki/Mexican_peso#Nuevo_peso
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Dave
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The "Libertad" coins are 99.999 fine.
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Packoderm
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That would be an excellent gift idea.
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toneart
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The value of any government minted silver coin is worth its current weight in ounces on the world market, rather than its face value.
If they are going to mint Libertads with a face value stamped onto it, they would still be worth their weight, in ounces
Maybe they are going to back their currency by the government stash of physical silver. (?)...Gold, too (???) They have silver mines that are
producing well.
The United States used to be on the gold standard. President Nixon removed it and let the currency float, unsecured. And now, after QE2 expires, and
impending (but denied) QE3, the dollar is becoming worthless very quickly. They can't print the pretty paper fast enough. It is "backed by the full
faith and credit of The United States Government".  The State of Utah just went
on the Gold Standard. The University of Texas recently acquired a huge stash of Gold.
The Gold and Silver Bug "nuts" are making more and more sense.
So, how's your faith holding up?
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Dave
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Not quite
| Quote: | Originally posted by toneart
The value of any government minted silver coin is worth its current weight in ounces on the world market, rather than its face value.
If they are going to mint Libertads with a face value stamped onto it, they would still be worth their weight, in ounces
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If Mexico monetizes silver the coin will be worth it's face value in fair trade for goods and services. In addition/at minimum it would be
worth the spot price of silver.
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Bajahowodd
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I've always had very mixed feelings about what Nixon did. However, it would seem to me that the entire world economy would look vastly different
today, had the US stubbornly held on to to "gold standard". Conventional wisdom at the time was that eliminating the "gold standard" and allowing the
value of the dollar to float would have disastrous consequences.
That said, laugh if you will about the full faith and credit thingy, but despite the occasional hiccup reported about nations seeking to create a
market basket of currencies, blah, blah.... if one surveyed the major nations of the world, they would still vote for the dollar to be the anchor in
international business transactions.
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toneart
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| Quote: | Originally posted by Dave
| Quote: | Originally posted by toneart
The value of any government minted silver coin is worth its current weight in ounces on the world market, rather than its face value.
If they are going to mint Libertads with a face value stamped onto it, they would still be worth their weight, in ounces
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If Mexico monetizes silver the coin will be worth it's face value in fair trade for goods and services. In addition/at minimum it would be
worth the spot price of silver. |
I am not disputing what you are saying. But I wonder, why would anyone spend it for goods and services at face value when they could get spot price?
That is, unless their whole economy collapses.
That is a worst case scenario, but one that is possible. Better to trade for what you can get in real stuff rather than for worthless pesos (or
dollars).
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monoloco
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They sell gold and silver coin at Bancomer, I checked into it last year, but for what they were getting over spot prices it wasn't any deal.
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Dave
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| Quote: | Originally posted by toneart
I am not disputing what you are saying. But I wonder, why would anyone spend it for goods and services at face value when they could get spot price?
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Because the issue price will be well above spot. I'd envision a 1oz coin with a value of 200 pesos, probably more. The Mexican government can monetize
silver at whatever price they see fit.
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