In 2011 Gold in U.S, Dollars hit a high of $1,900. The high gold price in Mexican Pesos was MXN24,000. Here in 2019 gold finally, broke through a ceiling of $1,360 that had been in place for six years. It currently trades at $1,529.
The gold price in Mexican Pesos has moved to MXN30,499. The MXN peso was 13.50 to the dollar in 2011, and now is 20.06 to the dollar.
Tom Dyson at Bonner & Partners said in a recent email. "but there are 56 countries left on the planet where the gold price is NOT yet at an all-time high. Many of them have pegged currencies to the dollar.
The U.S. is one of those countries. We would need another 23% rise in the price of gold to reach a new high.
What does that mean to me, Mike?
If you are moving to Mexico, it seems logical to convert some of your pesos to gold. We moved here in the first quarter of 2015. Gold was MXN18,000; today at MXN30,499. Converting dollars to Pesos would have given us a big loss.
More about the implications to come.
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