Tuesday, October 25, 2016

Hugo Salinas Price*:
How I Became a Gold-Bug
"I was born in 1932. As a little boy, I loved to play in my father's store after school hours, and one afternoon when I was perhaps eight years' old, one of the salesmen took two gold coins out of his vest pockets (men wore vests in those days). They were the large, 1.2 ounce gold "Centenarios" that had been minted to celebrate the 100th Anniversary of Mexican Independence from Spain in 1810. The salesman balanced the two coins on his forefingers, and placing them near my ear, he gently touched one against the other. The sound was the delightfully pure ringing of gold! .. A couple of years later, when my father was driving home after the store closed, he pulled out a lottery ticket from his coat and said: 'This lottery ticket did not win a prize, but it did win a refund of $100 pesos. I'll give you the refund. What would you like to buy with the refund?' I unhesitatingly replied: 'Buy me some gold coins!' .. I went home with my gold coins, and promptly put them in my father's safe, to which he gave me the combination. They were really the only thing of value in the safe, and from time to time, I used to open the safe to examine the beautiful gold coins. So that's how I became a gold-bug at age 10 .. What happened to my little stash of ten $2 peso gold coins? I still have them, after all these long years - I am now 84. Slowly but surely, they are growing in value, and they are still obtainable today, in exchange for $1,523 pesos each as of this date. These are really $1,523,000 pesos if we take away the artificial revaluation of our Mexican money in 1993, when every $1000 pesos was converted into $1 "new" peso. So my gold coins went from $10 silver pesos in 1942, to $1,523,000 paper pesos in the course of about 74 years."
LINK HERE to the essay

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