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Canadian_Nickle
Penny Hoarding Member
Canada
938 Posts |
 Posted - 01/19/2007 : 18:46:50
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A new service for silver savers in Mexico
By: Hugo Salinas Price
-- Posted 19 January, 2007 | Digg This Article
By Hugo Salinas Price, You must be logged in to see this link.
Banco Azteca, which has about 1,000 branches throughout Mexico, is about to launch a new service for those who like to save silver. It is the first bank in Mexico to offer this service; other banks are expected to follow suit, sooner or later.
The new service is called “Silver in the Vault”. This service will provide savers with a safe place to store their one ounce silver “Libertad” coins, which Banco Azteca has been selling for some time now, having taken over the sale of these coins from its parent company, Grupo Elektra, which operates stores that retail durable household goods.
Only “Libertad” one ounce coins will be accepted for “Silver in the Vault”. The coins in the Banco Azteca vault will remain the exclusive property of the depositor and the custody is the responsibility of the Bank.
The service will entail a small charge, payable quarterly.
Buyers of silver will be able to buy silver from Banco Azteca and place the silver coins in the Vault, all on-line, with a charge to their Banco Azteca account. They may also take delivery of their coins, at any time.
Sellers may also sell their coins to Banco Azteca, on-line, with a credit to their account.
Buyers may also continue to purchase their silver coins at the teller windows of Banco Azteca and take immediate physical possession of them, and sellers may also bring their coins to the tellers, for immediate sale.
Those who already own coins may bring them to the Bank for deposit in “Silver in the Vault” accounts.
Since the “Libertad” coin is legal tender, albeit with restrictions which impede its use as money, the purchase and sale of these coins causes no Value Added Tax, which exists in Mexico.
All the details will be made public very shortly and this service should be in operation throughout Mexico in the course of the month of February, after an initial pilot run and gradual introduction to all branches.
This service is available only to Mexican residents.
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This is an important preparatory step to the possible monetization of the “Libertad” ounce, which is the objective of the Mexican Civic Association Pro Silver. A Bill to this effect will shortly be presented in the Mexican Congress. There is vast popular support for this Bill; the only opponent, the Central Bank, may be hard pressed to defeat its approval.
Once monetized, the “Libertad” ounces held in the custody of Banco Azteca would acquire an ascertained monetary value, closely based on the value of silver; the monetary value would rise as the price of silver in pesos rises, but not be reduced in the event of a fall in the price of silver. (At present, the value of the “Libertad” ounce fluctuates in accord with the international price of silver.)
After monetization, these custody accounts in Banco Azteca would immediately serve as unquestionable collateral for instant loans by the Bank, at low interest rates. The silver would remain the property of the borrower (who has borrowed fiat pesos) but blocked in guarantee against the payment of the loan. Once the loan is paid back, the owner of the silver can once again dispose of it.
The monetization of the silver ounce would provide a great incentive to saving, without the need to entice the saver to save by means of paying interest on his banked funds, which are actually a loan to the bank holding the depositor’s funds.
This would ensure that the population of Mexico would always have at hand at least a small amount of real, tangible money savings outside the scope of the banking system which, like banking systems throughout the world, is vulnerable to unexpected financial events.
The monetization of the silver ounce would thus place silver permanently in circulation in Mexico, in parallel with paper money and bank deposits. The fiat peso would remain the official currency of the country.
Hugo Salinas Price, President
Asociación Cívica Mexicana Pro Plata, A.C.
Mexico City.
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 01/19/2007 : 19:34:16
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This sounds beneficial to those in Mexico who do not want their silver Libertads stolen if kept at home.
However, after reading this story a few questions popped into my head:
1. Wouldn't it be just as easy to keep the silver in a safe deposit box and avoid the small charge, whatever it may be? Safe deposit box fees may be equal to the small charge for silver accounts, but at least safe deposit boxes offer some degree of privacy, while the silver Libertad account would be just like any bank account, open to examination by banking authorities.
2. During a national crisis in Mexico, wouldn't the Mexican Government do like the US Government did in 1933, nationalize (take) the precious metal to help out the government, with the promise of repayment in paper Pesos?
"There is no altruism among nations." Bismark
There isn't any between governments and its citizens either.
3. The bank acts as caretaker of the silver, what happens if someone in the bank decides to walk off with the silver and head to Argentina? There are embezzlers in banks who walk off with paper money, silver money would be an even more tempting target, no serial numbers to worry about, and no questions asked when it comes time to sell.
4. What happens during a banking crisis and the banks are closed or if the bank fails? What happens to the depostior's silver?
Of course, I am using common sense here, something that is sorely lacking in this world of ours today. |
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Canadian_Nickle
Penny Hoarding Member
Canada
938 Posts |
Posted - 01/19/2007 : 20:46:05
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Good questions.
The oonly benefit this offeres over a safe deposit box (which I don't recommend either) is that you can add or sell silver from the box online without having to get it out of the box yourself as you would with a deposit box.
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n/a
deleted
479 Posts |
Posted - 01/20/2007 : 00:07:21
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This development seems (at least to me) to be a minor step in a grand plan to monetize silver.
THe next step would be for these same banks to issue "silver certificates".
btw, anybody notice the price of nickel today?
.................................................
A billiard ball dropped from 1,362 feet (height of the South Tower) in a
vacuum would require 9.22 seconds to hit the ground. How then did the
towers collapse in 10 seconds and 11.4 seconds, and why has not one
member of the mainstream media insisted on honest answers from the
government in this regard?
"The individual is handicapped by coming face to face with a conspiracy
so monstrous [that] he cannot believe it exists."
- J. Edgar Hoover |
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mexico silver currency plans
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