New policy on purchase
and sale of silver 'Libertad' coins
Hugo Salinas Price
Oct 28, 2008
Banco Azteca, with over 800
branches in Mexico, informs us that it will apply a new policy
to the purchase and sale of silver "Libertad" ounces
at all its branches.
In response to the restriction
on supply of silver "Libertad" coins applied last week
by the Bank of Mexico, Banco Azteca will proceed as follows:
Banco Azteca will seek to attract
the re-sale of silver ounces in order to satisfy, as much as
possible, the strong demand forecast for the year-end.
Therefore, Banco Azteca will
raise the re-purchase price of silver from the public to where
the re-purchased quantities equal the quantities sold to the
public, always maintaining the necessary margin to cover costs.
If the price of re-purchased
silver is too high, the supply from the selling public will surpass
the demand of the silver-purchasing public.
If the price of the re-purchased
silver is too low, the supply from the selling public will not
be sufficient to cover the demand from the purchasing public.
Banco Azteca will seek to discover
the intermediate point, which will balance the supply from the
selling public with the demand from the purchasing public.
Banco Azteca had been looking
forward to selling 250,000 silver ounces during the Holiday season.
With the cutback in supply, current policy would cause Banco
Azteca's inventory to fall to zero in the course of next week.
Sales will be much reduced,
from here on, but at least the program adopted will have the
virtue of demonstrating what the actual market price of silver
ounces is in Mexico , independent of any relation to Comex silver
Banco Azteca was informed by
a source at Banco de Mexico, that the restriction of supply was
due to a "very large foreign order for silver ounces".
The Mexican Civic Association
Pro Silver does not accept this excuse, even if it were true,
because in any case providing the Mexican people with silver
ounces would have to be its Number One priority, and not supplying
a foreign buyer while depriving Mexicans of silver ounces.
Furthermore, this Association
was told years ago by an officer of Banco de Mexico that the
Mexican Mint was capable of minting up to 10 million ounces of
silver coins a year.
We believe the restriction
of supply in silver ounces is meant to deprive the Mexican population
of the possibility of seeking refuge in silver as a protection
against financial and economic carnage, and to force Mexicans
into depositing their savings in the Banking System, with
Oct 27, 2008
Hugo Salinas Price, President
Asociación Cívica Mexicana Pro Plata, A.C.