The History of the Gold Mexican Peso
The history of the gold Mexican peso is fraught with many historical perils. Like many stories, it also has is days of triumph and glory. The historical past of the Mexican peso both non-gold and gold pesos is highlighted in this article. For historical purposes, we will focus on the details of major events over the last couple hundred years.
- Where did the Mexican peso come from?
- Why was it created? And When did that event take place?
- What where the major events that shaped the movement of the Mexican Peso?
- Why is it a good time to invest in gold today?
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A Stable Mexican Peso Until The 1970's
The Spanish Empire originally created the eight pieces of coins previously known as the Spanish dollars and were in wide use throughout Asia and the Americas. This currency was circulated until the 19th century and even America had accepted it as legal tender until the creation of the Coinage Act in 1857.
In the 20th century, the Mexican currency or better said (The Peso) was the most stable currency in South and Latin America until the 1970's when the oil crisis began and the Mexican Peso began to collapse. By the 1980's the Mexican government defaulted on it's overseas debt and as a direct result of this, assets and money began to flow out of the country very rapidly. Investors no longer had confidence in the Mexican economy and the country's government.
After these horrific events took a toll on Mexico, a new pact was formed. The "Stability & Economic Growth Pact" was created to ensure that a stable economy is always the top priority. The Bank of Mexico created the "New Peso" which at the time was written as (N$). Over the years, the (N) was eventually dropped, it was a way to create a difference in value between the old peso and the new peso.
Let's back-up a little to the Gold Mexican Peso
During the beginning of the 20th century, the Mexican gold peso came to light. It was first minted in 1921 to commemorate 100 years of independence. The Mexican war for independence started in 1810 and lasted until 1821. The Gold peso was produced at the Mexico City mint which happens to be the oldest mint in South America. At the time it had the reputation of being the purest gold coin on the continent.
The First Coins
The mint ‑ also known as La Casa de Moneda de Mexico ‑ was founded in 1535 by the viceroy of Spain Antonio de Mendoza. During the 16th and 17th century mining in Mexico was so profitable that almost all coins minted were either in Gold and Silver, with only a few made of Copper.
The mint started realizing the Charles and Juana coins as early as 1536. These coins were made in honor of Queen Dona Juana of Castile and her son Charles the Ist who ruled on her behalf.
The demand for the Mexican coins began to grow in the 17th and 18th century. Even though the mint had to produce more coins and the quality of the coins began to decrease during this period, many countries that did not have the silver & gold or the mints adopted Mexican currency. For this reason, it was one of the most popular currencies in the world from the 16th to the 19th century.
Investing in Gold
If you are looking to invest in gold, this is the best time to do it. The price of gold has been rising steadily in the last few years. Mining companies have responded to the boom by producing more than they usually do. The cost of producing more gold is steep and it is very probable that many companies will cut down on production. This presents great prospects for investors since the demand is likely to continue growing.
You can even find investment firms that are currently buying significant quantities of gold for their own portfolio in anticipation of an increase in price in the next two years. Billionaire and hedge-fund manager John Paulson had invested 4.3 million shares of SPDR Gold. The world's largest hedge fund Bridgewater associates bought shares worth $68 million.
Hedge-fund manager John Paulson is advising investors to diversify by placing 5% to 10% of their assets in gold. In the second quarter of 2017 more investors continued to invest in gold as the direction of monetary policy in the United States remained uncertain.
Mexican Gold Peso
- The Mexican gold peso is one of the options you should consider if you want to invest in gold.
- The Mexican mint is recognized for producing high-quality coins since it was established in the 16th century.
- Silver coins from Mexico were widely used as a standard form of currency for centuries.
- If you are looking to diversify your portfolio, companies like Chula Vista Coins & Stamps can help you save when you buy more than $1,500 in gold coins.
Dealer Shops like Chula Vista Coins & Stamps can organize a tax-free purchase. You can view the different types of coins on their website. You'll find online tools for dealer listing and item request that will enable you to buy gold or silver on the spot.