Re: A Question For The QE = PM Bull Crowd..kw8
I made sone enquiries of mexican friends one of whom was ( highly) connected with the previous regime about the mexicans use of silver. What I was told is that mexicans save in silver--they do not spend it--but spend pesos. I don't really know what that means precisely since presumably savings are intended at some time to be converted--but maybe only for a short time for tangilbe property like land or a house.
Also I still don't know if a non-citizen can legally buy or sell bullion in Mexico. Does anyone here know?
But since it is basically a cash economy--- trading between persons of any currency happens all the time. They are all desperately trying to avoid the 16 per cent IVA tax. Thus invoices are a rarity since to invoice you must charge the IVA. Obviously these are personal transactions not commercial sales on a broad basis.
In addition safes sell out quickly and money is held privately by many rather than in banks. The banks get a bit but only a bit as far as I can tell.
Still working on figuring the mexican "way" with silver but if you know "them" they don't say much to a gringo.