Story Of A Gold Coin

December 4, 2018

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.

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.

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.

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%.

The international price of an ounce of gold, as of last Friday, November 30, closed at $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.

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.

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!

Mexico has a brand-new President. Nobody has any idea what the peso/dollar rate of exchange will be, when his term is over in 2024. I really don't care, for I don't expect to live another six years. But for the time being, I am not selling my $50 gold peso coin.

Originally posted at 

Hugo Salinas Price is a Mexican citizen, born in the USA of an American mother and a Mexican father. He is 81 years of age. Married for 58 years to a Mexican wife; they have 18 grandchildren. He dropped out of three universities: Wharton, Monterrey Tec (Mexico) and National Autonomous University of Mexico.  Hugo started out in business life in 1952 as a General Manager of a tiny company manufacturing radios in Mexico City. He was 20 years old at the time and soon learned about the importance of having funds to meet the pay-roll every Friday. The company was owned by his father, and gradually turned into a manufacturing company with its own retailing branch, selling all sorts of consumer goods, including its own TVs.  His website is

Pure gold is non-toxic when ingested.