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Famous Mexico Silver Libertad Coin Suspended From Production

Banco Azteca
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EDITOR NOTE: Mexico’s central bank has suspended further production of the silver Libertad coin, citing the coronavirus as the reason for the disruption. This follows a similar decision by the US Mint in which gold and silver coin production was brought to a halt due to Covid limitations. The article below claims that both stoppages are part of an attempt to suppress gold and silver prices; as if the halt in production might discourage demand. If that’s the case, it’s backward. The demand for physical gold and silver is driven not by metals availability but by the rapidly expanding money supply. In other words, the fear of inflation is spurring demand for safe-haven assets. Halting production will only increase demand in an environment of scarcity, causing gold and silver prices to skyrocket. It’s capitalism 101: businesses have to adjust their supply to consumer demand, not attempt to adjust consumer demand to their supply. But again, we’re dealing with economists getting paid for actualizing their theories into policy and not people who have to make a living getting their hands dirty in a “real” market. 

Hugo Salinas Price, president of the Mexican Civic Association for Silver, whose family operates Banco Azteca, reports that the Mexican central bank, the Banco de Mexico, has suspended production of the famous Mexican silver Libertad coin --

https://www.banxico.org.mx/banknotes-and-coins/new-libertad-series-silve...

-- attributing the decision to difficulties caused by the coronavirus epidemic.

Banco Azteca long has purchased the Libertad coins from the central bank and sold them to the public, with monthly sales lately reaching 50,000. Now, Salinas Price says, the only Libertads Banco Azteca can obtain are those its customers are willing to sell. 

Of course in recent months the U.S. Mint also has reduced or suspended production of U.S. gold and silver coins, again blaming the virus epidemic.

People familiar with gold and silver price suppression policies of governments and central banks and with the tight conditions in the gold and silver markets suspect that the epidemic is being used as an excuse for decisions by the mints not to enter the market for monetary metals when demand is high, supplies are tight, and increased production of gold and silver coins might drive prices higher and encourage more demand.

GATA has asked the Banco de Mexico for comment.

Originally posted by SilverSeek.com

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