Due to recent bouts of blistering inflation, the government of Mexico is contemplating monetary reform that could result in the monetization of silver. According to Hugo Salinas-Price, successful businessman and president of the Mexican Civic Association for Silver, Mexico represents one of the few world economies that approves of national legislation creating a fiat currency alternative.
Salinas-Price maintains that in order for large-scale financial reform to work, the system for designating and valuing legal tender must be simplified. Creating a working system by which silver is legal tender, would require stabilizing its value, so that precious metal speculation could not take place.
The Mexican Civic Association for Silver, (Asociacion Civica Mexicana Pro Plata) believes that creating a new one-ounce coin, bearing no engraved designation of monetary value, would solve the volatility issues that silver currently faces. Mexico’s central bank would be allowed to increase the value of the new Libertad coin when the commodity price of silver surges, but the value of the coin would remain stable, if silver’s value declines.
Lobbying efforts are currently underway to institute the new silver coin, which Salinas-Price and his cohorts believe will generate a safe haven for the Mexican middle class.
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