In the same category

How I Became a Gold-Bug

IMG Auteur
Published : October 25th, 2016
720 words - Reading time : 1 - 2 minutes
( 2 votes, 5/5 ) , 1 commentary
Print article
  Article Comments Comment this article Rating All Articles  
[titre article pour referencement]
0
Send
1
comment
Our Newsletter...
Category : Today's Editorial

My father was Hugo Salinas Rocha -"Salinas" was his father's surname, and "Rocha" was his mother's surname; the custom of using both parents' surnames is universal in Latin America. Father was a successful merchant in Mexico City, and in the 1930's he ran a store in downtown Mexico City. The store belonged to a company founded by his father, Benjamin Salinas Westrup and to the partner he took into the business, his brother-in-law, Joel Rocha Barocio; the company name used their initials: "SyR" (the "y" means "and" in Spanish).

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!" So the next day, a salesman from my father's store took me on a short walk downtown, from the store to a side-street. Three or four men in suits and wearing hats - men wore hats in public, in the 1940's - were posted along the sidewalk, and were clicking gold coins in their hands. They were gold-traders, and clicking gold coins was their way of attracting the attention of customers.

At that time, the silver pesos we used as money could be exchanged for gold pesos at a rate of five silver pesos for one gold peso. The smallest gold coin was the $2 peso coin, with 1.5 grams of pure gold content, so each one cost ten silver pesos. Thus, on a sidewalk in downtown Mexico City, my gift of $100 silver pesos was exchanged for ten $2 gold peso 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.

* * *

When I was 14, in 1946, I was taken to school to my mother's home-town in the US. The only person I knew there, was my maternal grandmother, but everyone knew who I was - the son of Norah, the Price girl who married a Mexican in 1931 and went off to Mexico to live. I was at school for three years of high school, and very much enjoyed my time there.

During my years at school it never crossed my mind to think that of all the people in that small town, I was very probably the only person - and only a youngster, at that - who had ever seen a gold coin, let alone owned one. Americans are still generally unaware of gold money, since they were deprived of it in 1933 by FDR, and only allowed to own gold again in 1971, thanks to the efforts of the great American Jim Blanchard.

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.

 

Data and Statistics for these countries : Mexico | Spain | All
Gold and Silver Prices for these countries : Mexico | Spain | All
<< Previous article
Rate : Average note :5 (2 votes)
>> Next article
Hugo Salinas Price is the founder of Mexico's Elektra retail chain. Hugo Salinas Price currently is retired from retailing and focuses on being a proponent of a sound financial policy for Mexico[1]. Salianas Price is President, Mexican Civic Association Pro Silver, A.C
Comments closed
  All Favorites Best Rated  
I normally don't comment but my story is so similar I couldn't resist.

I was raised by my Great Grandmother. We didn't have much but she was able to keep a small stash of cash in a safe deposit box. She had lived through the depression and didn't trust banks. Several time a year we would trek to the bank to get a little cash or for her to count the stash. While she was doing her business I was free to look at the other contents of the box. During one trip I found a $5 gold piece (1914-S Indian Head Half Eagle) mounted in a plain gold necklace. From that day on I was fascinated by that piece. When she died she ask what I wanted and of course selected the necklace. After nearly 60 years I still have it.
Rate :   1  0Rating :   1
EmailPermalink
Latest comment posted for this article
I normally don't comment but my story is so similar I couldn't resist. I was raised by my Great Grandmother. We didn't have much but she was able to keep a small stash of cash in a safe deposit box. She had lived through the depression and didn't trust  Read more
MikesWorld - 10/26/2016 at 7:57 PM GMT
Rating :  1  0
Top articles
Latest Comments
Battle Royale
22 JanJ.-1
"Boundless rage", does seem to be a characteristic of the collectivist Left.
Coming Attractions
22 JanJ.0
You are correct, history does recycle. And it has been long enough that all those who remember first hand what the last cycle of collectivist revo...
Ecological Armageddon: “We Are Destroying Our Life Support Systems!”
19 Jankevthorne
In further support of the article's conclusions, I recommend this treatise written by Jeremy Grantham, a chief investment strategist: "The original...
Beware the "ZeroHedge Trap"
16 Janjohngaltfla@yahoo.com
Nicely done and very well written. The doom is coming but this asteroid misses Planet Earth in Q1. However, I think we are in for a substantially r...
Turbulence and Brexit Make Safer Options Like Gold and Cash Essential
15 Janallstarchuck
If investors included safe-haven assets in their portfolios possibly mistaking them for a hedge, they would potentially inflate their prices in nor...
Top Ten Trends Lead to Gold
14 JanAriana33
This is a good article, and I can agree with many points. I've been investing in gold, particularly the American Gold Eagles for quite some years n...
The Black Swan So Ugly No One Will Talk About It
14 JanS W.
A black swan is a highly improbable event. Obviously the author of the article does not understand that.
Fed’s Balance Sheet Reduction Reaches $402 Billion
07 JanRocco
Every time the FED speaks, gold skyrockets. Just buying some gold every time before the FED makes an announcement and then selling for a quick prof...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS