A Complete Guide To Mexican Gold Coins
Today, it’s simple to picture Mexico as having crystal-clear waters, nice weather, and sandy beaches. We might overlook the fact that Mexico also has significant silver and gold reserves, too.
Because of this, if you’re a gold collector or numismatist in general, you might have initially overlooked Mexican gold coins. You might even be hesitant to purchase them. We put up this guide to these fascinating coins to assist you in learning more about them.
What Are Mexican Gold Pesos?
The US Gold Eagle, for instance, contains a large percentage of silver in the alloy, which gives it a less striking color. This Mexican Gold Peso is produced from an alloy of 90% gold and 10% copper, producing a durable coin with a brighter orange color than many other bullion coins.
Although it has a lower gold content than the majority of other popular bullion coins, it is equivalent to US coins from before 1933.
The Peso is legal tender and has a face value, like most bullion coins, however, it is far less than the intrinsic worth of the metal it contains. The 50 Pesos coin is the most popular one available. 1.2057 ounces of pure gold are contained in this.
Furthermore, the 20 Pesos (0.48227 oz), 10 Pesos (0.2411 oz), 5 Pesos (0.1205 oz), 2.5 Pesos (0.0602 oz), and 2 Pesos are some of the lesser coins (0.0482 oz). Except for the 5 and 10 Peso pieces, all Mexican coins have unique face designs. However, the back of all Mexican coins features variations of the Mexican coat of arms, which includes a golden eagle perched on a cactus and devouring a serpent.
Depending on their age and composition, the majority of gold Pesos are collectible. Due to their purity and relatively cheap entry cost compared to modern coins, some collectors prefer them.
Why Should Someone Invest in a Mexican Gold Peso?
The approximately 500-year-old Mexico City Mint produces a variety of silver and gold coins, all of which are recognized internationally, including the gold peso. A wide range of fascinating and lovely designs are also present on pesos, greatly enhancing their intrinsic worth.
Essentially, the Mexican gold peso series’ wide range of denominations is arguably its best feature. The tiny 2 and 212 pesos coins should be widely accessible to shoppers on even the tightest of budgets.
Coin collectors who can afford to spend more money can get the enormous, stunningly beautiful 20 and 50 pesos coins.
The cheap premium compared to other gold coins is one of the main advantages of collecting Mexican peso coins.
Mexican Gold Peso Coins can typically be purchased for a mere 3–4% premium above their basic gold values. When purchasing smaller amounts, the premium difference is very noticeable.
Due to the higher production costs, fractional gold bullion coins nearly always sell for a hugely disproportionate premium. The 1/10th ounce Canadian Gold Maple Leaf and the 1/10th ounce Krugerrand, for instance, often sell for prices 20 to 25 percent higher than their base gold values.
Are Gold Pesos Collectable?
There are numerous face values and designs available for Mexican gold coins. In recognition of the country’s independence, the current Mexican Mint produced the first gold coin in 1921. The Centenario coins are very collectible.
Furthermore, Mexican Gold Coins are valued based on their gold metal content and historical value. Due to their extreme rarity and uniqueness, these coins are highly prized by investors and collectors worldwide.
There are pesos that were minted in gold as early as 1870. Today, the Mexican gold Libertad serves as the official gold bullion coin of Mexico.
Pros and Cons of Mexican Gold Coins
More Gold Weight per Coin
If you decide to invest in Gold Centenarios, you should know that they are more valuable to investors than most conventional bullion because they contain more than one ounce of gold. On the other hand, if you are expanding your collection with Centenarios, their unique weight will undoubtedly offer a great deal of interest and a piece of history to the rest of your numismatics.
Like other types of bullion coins, Mexican gold coins can serve as an inflation hedge. It is the amount of the bullion that counts for this purpose, not the Mexican government which minted the coins you invest in.
Mexican gold coins offer many of the same advantages while not being as well known as Krugerrand gold coins, which are accepted everywhere and are regarded as one of the best options for investors. These coins won’t add extra weight to your portfolio, and you can sell them just as quickly as you did when you first got them. Worldwide recognition makes selling these coins a breeze.
Not An Asset With Passive Income
Warren Buffet and other prominent financial figures hold the view that investments should generate profits. Because it does not generate anything when you hold it, gold does not actually fit this need. You should select an asset that will increase your money if you wish to become wealthy.
Capital Gains Tax
Furthermore, the Internal Revenue Service applies negative tax treatment to precious metals. The long-term capital gains tax rate for the majority of investments, such as equities and mutual funds, is 15 percent. This means that, when you sell a stock that you have held for more than a year, you must pay a 15 percent tax on your earnings. There is a 28 percent long-term capital gains tax on precious metals and collectibles.
Prone To Counterfeiting
Mexican coins have been known to be prone to counterfeiting. Therefore it’s always important to check with an expert that the coins are legitimate.
The value of gold investments increases over time. Therefore, the metal has value even though the coin itself has no intrinsic value. This is why collectors value the coin so much.
Where Do Mexican Gold Coins Come from?
In the Republic of Mexico, Mexican gold peso coins were issued as legal tender. They had face values ranging from two pesos to as much as 50 pesos. Even though these coins might be used to make regular transactions in Mexico, no one would dare to exchange them for such a low price in reality.
The reason is that these stunning bullion coins have a much higher intrinsic worth than their limited face value would imply. The spot price of gold determines the actual worth of these lovely coins, with the relevant supply and demand levels playing a secondary role.
How Much Are Mexican Gold Coins Worth?
When in good condition, nineteenth-century coins are rare and highly prized. Depending on when and why a country released the coins, the designs on those coins differ. After 1870, coins were usually produced with a bust of the nation’s current leader on one side and the denomination on the other.
The first Centenarios were produced in 1921 and weigh 1.2 ounces with a purity of 0.900. Despite having a face value of 50 pesos, these commemorative coins were never intended to be used as money. They now fetch thousands of dollars when sold.
As an example, 0.4823 troy ounces of gold bullion are contained in each Mexico Gold 20 Pesos coin. Based on the current gold spot price, one Mexico Gold 20 Pesos coin has a value of $856.47.
Where Can I Get Mexican Gold Coins?
Customers should go to a coin dealer if they wish to sell gold coins or commemorative coins that aren’t considered to be legal tender.
At the current gold price, coins, especially proof coins, are bought for their gold content. The customers are paid out in the currency of the specific country that they are in when they sell the coin. Customers receive money straight into their bank accounts after payments are completed electronically. At the time the transaction is completed, the customer is given a receipt. Thereafter, another customer will then purchase the gold coin from the company.
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