{"id":42057,"date":"2018-12-28T09:57:11","date_gmt":"2018-12-28T14:57:11","guid":{"rendered":"https:\/\/olduvai.ca\/?p=42057"},"modified":"2018-12-28T09:57:11","modified_gmt":"2018-12-28T14:57:11","slug":"story-of-a-gold-coin","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=42057","title":{"rendered":"Story of a Gold Coin"},"content":{"rendered":"
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Story of a Gold Coin<\/a><\/h3>\n<\/div>\n
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Here’s a true story of one gold coin, a 50 Pesos gold coin like that pictured above.<\/p>\n<\/section>\n<\/div>\n<\/header>\n
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Earlier this month, my friend Hugo Salinas Price emailed an interesting story about a single gold coin that that he still holds dearly.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Story of a Gold Coin<\/strong><\/a> by Hugo Salinas Price<\/strong><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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As I was shuffling papers in some old files, I came across a slip of paper on which I had written down the price I had paid for a Mexican $50 gold peso coin: 717 Mexican pesos.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Judging from the price, I figure that the purchase was made sometime in 1972, when the price of a Troy ounce of gold was $46 dollars. The Mexican $50 gold peso coin contains 37.5 grams of pure gold, and 37.5\/31.1 grams per Troy ounce, is 1.206: so there is 1.206 times more gold in a Mexican $50 gold peso piece, that in a Troy ounce of gold.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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Thus, $46 dollars per ounce x 1.206 = $55.48 dollars as the value of the gold in the $50 gold peso coin, in 1972.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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The rate of exchange Dollar\/Peso in 1972 was 12.50 Mexican pesos per dollar, so $55.48 US x $12.50 = 693.50 pesos. I paid 717 pesos, because gold coins are always sold for a small percentage more than the price of bullion gold; in this case, the surcharge was for 3.4%.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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The international price of an ounce of gold, as of November 30 was $1,222.10 dollars. The rate of exchange was at 20.40 Mexican pesos per dollar. So today’s price of the Mexican $50 gold peso coin should be close to $1,222.10 x 20.40 x 1.206 = 30,067 pesos. The quote this morning is: 30,890 pesos.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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So my investment of 717 pesos, made 46 years ago, has turned into an investment worth 30,890 pesos today. Looks like a good investment.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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But there’s a lot more! Because back in 1993, our President Salinas de Gortari chopped three zeroes off the rate of exchange. So actually, the 717 pesos I invested turned into 30,890,000 of the old pesos!<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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\u00a0\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n","protected":false},"excerpt":{"rendered":"

Story of a Gold Coin Here’s a true story of one gold coin, a 50 Pesos gold coin like that pictured above. Earlier this month, my friend Hugo Salinas Price emailed an interesting story about a single gold coin that that he still holds dearly. Story of a Gold Coin by Hugo Salinas Price As […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[374,13118,23656,14648,13390,4948,1100,647],"class_list":["post-42057","post","type-post","status-publish","format-standard","hentry","category-economics","tag-gold","tag-hugo-salinas-price","tag-investement","tag-michael-shedlock","tag-mishtalk","tag-paper-currency","tag-paper-money","tag-precious-metals"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42057","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42057"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42057\/revisions"}],"predecessor-version":[{"id":42058,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42057\/revisions\/42058"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42057"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42057"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42057"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}