Based on communication with the Central Bank of Mexico, the principal supplier of silver ounces to Banco Azteca, supply will likely be “exhausted” by year’s end!
(by Half Dollar) Silver Bugs, stackers and other smart investors, take note!
Silver Fever is running through Mexico!
Hugo Salinas Price has a stake in Banco Azteca, which are banks generally found inside of department/rent-to-own stores called Elektra.
You know the banks inside of the various Walmarts?
It’s kind of like that.
Anyway, despite a peso that is having a rough time of it against the US dollar this year, again:
On net, Mexicans are stacking physical silver!
From Hugo Salinas Price at Plata.com.mx (bold added for emphasis):
The current price at which BAZ sells “Libertad” silver ounces to the public is $600 pesos.
The current price at which BAZ purchases “Libertad” silver ounces from the public is $550 pesos.
In October 2020, BAZ sold 55,622 “Libertad” silver ounces, and purchased from the public 15,315 ounces. At present, the desire of the public to purchase silver ounces far exceeds its willingness to part with its silver ounces.
The fundamental souce of supply of silver ounces for BAZ is Banco de Mexico, Mexico’s Central Bank; this institution has informed BAZ of its available supply of ounces for this year, and BAZ estimates that that supply will likely be exhausted before year-end.
And thank you in advance for allowing my liberal use of math in assuming there was one buyer or one seller for each ounce of silver.
Everybody knows ‘Ol Half Dollar ain’t no dang mathematician!
Along with the weak peso when measured against the US dollar, this ferocious appetite for real money comes just as “official” inflation is surging.
From Nasdaq on October 5, 2020 (bold added for emphasis and commentary)
Inflation in Mexico likely picked up slightly in September to its highest level in 16 months, nudging it further away from the central bank’s comfort zone, a Reuters survey on Monday showed.
The median forecast of 11 analysts was that consumer price inflation would tick up slightly to 4.07% from 4.05% in August. MXCPIA=ECI That would take the headline rate to its highest level since reaching 4.28% in May last year.
Imagine what consumer price inflation must really feel like South of the Border if the official number is above 4.0%!