Gold in Mexican Pesos

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.

Huge Bet on Gold

El Limón-Guajes mine, inaugurated this week. MILENIO/JESÚS QUINTANAR 

A Canadian-owned mine in the Guerrero Gold Belt is the biggest single investment ever seen in the state, said the governor this week at the official inauguration of the El Limón-Guajes mine.

Construction of the US $800-million gold mine, located on 630 hectares of land 43 kilometers south of Cocula, began in 2013.

With annual production capacity of 358,000 ounces of gold, it will be one of the largest and lowest-cost gold mines in the world, according to Toronto-based Torex Gold Resources Inc.

Torex CEO Fred Stanford said the mine has generated 5,000 jobs in the area, both in direct employment by the company and through contractors. He also said an important feature of the project is the environmental monitoring and a collaboration agreement with the Autonomous University of Guerrero to ensure adherence to environmental protection standards.

This week’s event also saw Agrarian Development Secretary Rosario Robles present the keys to the owners of 169 homes built by the mining firm as part of its obligations to help in the development of local communities.

Torex invested $42 million in the construction of the 500-square-meter houses.

Governor Héctor Astudillo spoke at this week’s event, saying there had never been an investment — “neither a hotel nor a highway” — that matched that of the new mine.

Did You Know...?

 In a Zero Hedge guest post about Gold: "...it is perfectly legitimate to travel with precious metals. If you're entering, leaving, or transiting through the US, be sure to file FinCEN form 105 if the FACE VALUE of your gold exceeds $10,000.

For example, as a US 1-ounce gold Eagle has a face value of $50, you would need to file the form if you're carrying more than 200 Eagles (not including any additional cash/currency you happen to be carrying).

 It's also worth mentioning that if you are a US taxpayer, foreign safety deposit boxes where you have ultimate custody of your metal are currently non-reportable to Uncle Sam.

 So not only can you make a giant vote against the financial system, you can also regain some privacy.