New Mexican Silver Coin a Hit

Investors have taken a shine to Mexico’s newly introduced coin. It’s not gold, mind you, but silver, thus making Mexico the first silver-producing country to introduce a one-ounce, pure silver bullion coin.

Bruce L. Kaplan, vice president of Beverly Hills-based A-Mark Precious Metals, the exclusive wholesaler of the coins minted by Banco de Mexico, said the first issue of 1 million 1982 Libertad coins sold out within two months of nationwide test-marketing last fall. The coins’ introduction had been delayed because of Mexico’s massive financial woes.

“There was a big question mark in the minds of metals dealers whether one-ounce, pure silver coins would sell,” Kaplan said. “We test-marketed it in mid-September through October. Sales were spectacular.” He added that, amid a generally slow gold and silver market, sales of 1983 Libertads are continuing at a brisk pace, with about 700,000 of the 1 million coins offered now sold.

Mexico will release another limited mint of Libertad coins dated 1984 but will then begin minting only as many coins as necessary to meet demand beginning in 1985, according to Kaplan.

“The South African Krugerrand created an awareness that gold should be bought in the form of a coin rather than a bar. The public responded by buying gold coins. Incredibly, though, no one ever translated the concept to silver coins until the Mexican Libertad was released.” Kaplan said.

Until the Libertad coins were introduced, silver was available for purchase primarily in the form of bars or medallions minted by various silver companies. About the only coins available were those minted by the U.S. government before 1965, which now command premium prices because of their numismatic value.