Did you know that people invest in Centenario coins and similar gold bullion coins? Believe it or not, they spend thousands of dollars on each! Is it really worth the price, and why are people buying them anyway?
We will start by explaining how the Centenario coin was born. Next, we’ll explain why people are willing to spend so much on these pieces of metal. Most importantly, we’ll see whether or not you should buy some yourself.
Nowadays, people can invest in various assets, from stocks to cryptocurrency. Yet investors still depend on gold bars and coins. Read on to understand why to do this and see if you should invest in these metal coins as well.
What is a Centenario coin?
The word “Centenario” means “100 years”. These coins were created in 1921 to commemorate the 100th anniversary of Mexico’s independence from Spain.
It also has other names. Some call it the 50 Mexican Pesos Gold Coin. Others call it the 50-Pesos-Centenario. The Casa De Moneda De Mexico minted coins minted from 1921 to 1949.
There was, however, a huge demand for these Mexican gold coins. That is why Bank of Mexico issued 4 million of them from 1949 to 1972. Yet they will show their mint year of 1949.
The 50 peso gold coin is one of the largest in the Centenario coin series. The other weights are 20 pesos, 10 pesos, 5 pesos, 2.5 pesos and 2 pesos.
What does it look like?
If you get your hands on a 50 Peso Centenario coin, you will notice its reddish gold color. This comes from its 10% copper content. In addition, it has a small edge bar.
Instead of a wavy surface, it has a smooth edge with the inscription “Independencia y Libertad”. This phrase translates to “independence and freedom”.
The front of the coin or the “faceâPresents the Winged Victory. It is also called “El Ãngel de la Independencia” or “Angel of Independence”.
You will see him hold the broken chains of colonialism in his left hand. Meanwhile, the right holds a laurel wreath. Behind you will see the Mexican volcanoes Popocatepetl and Iztaccihautl.
On the left you will see the face value of “50 pesos”. On the right, you will see the fine weight inscribed “37.5 GR ORO PURO” or “37.5 grams of pure gold”.
Meanwhile, the back of a coin is called the “reverse”. It shows the Mexican coat of arms. He has a golden eagle perched on a cactus. You will also see a snake in its beak.
The 50 Pesos Centenario coin also meets the following specifications. You must know them if you plan to buy these parts:
- Mass – 1,2057 troy ounces (1 troy ounce of gold = 31.1034768 grams)
- Thickness – 2.69 mm
- Diameter – 37.1 mm
- Content – an actual gold content of 1.085 troy oz.
- Purity – 90.0% gold, 10% copper alloy
Read more: What are bullion coins?
Why do people invest in coins?
You now know what a Centenario coin looks like. Next, we’ll explain why people invest in gold coins in the first place. They do it for their collection, for compensation or for inflation.
A lot of people like to collect things. It can be stamps, baseball cards, or even PokÃ©mon cards. They can have fond memories of these items. This is why they are willing to pay so much!
Others just want to sell them for a profit. These people know how much collectors are willing to spend on these things. For example, someone sold a sheet of PokÃ©mon cards for $ 230,000 +!
Meanwhile, serious investors have a long term goal in mind when buying coins. They use Centenario coins and similar assets to protect against inflation.
This is when the price of most products goes up. In turn, money cannot buy the same amount of products. In other words, the value of money goes down.
Some precious metals retain their value despite these rising prices. They are also the main material of bullion coins. Investors turn their money into gold coins to protect their purchasing power.
The coronavirus pandemic is causing inflation around the world. Therefore, the demand for gold has increased. Its price has seen its ups and downs, however.
Should I invest in Centenario coins?
Known as the Centenario de oro, the 50 Mexican Peso was first issued in 1921 to commemorate the 100th anniversary of the Mexican War of Independence.
ð Mexican 50 Peso is best known for being one of the first gold coins in the world.
– Core Bullion Traders (@CoreBullionTRD) June 14, 2021
There is a lot of types of bullion coins available. For example, the United States has the American Gold Eagle coins. Some are made from other metals like silver.
Investors have reasons to prefer Mexican gold Centenarios, although. See if these perks convince you to buy the 50 peso coins:
- More affordable than the American Eagles – Centenarios cost less than other bullion coins. In return, you can get more value from your investment.
- Heaviest Gold Weight – It has 20% more gold than other coins. In other words, you get more value from every Centenario.
- Limited supply – A low offer often means that a product has a high value. As we said, only 4 million Centenarios were struck decades ago. This means that your coins are likely to remain effective hedges against inflation.
- Valued as a collector’s item and investment – Some gold coins are only useful as collectibles. Although they are of artisanal quality, they do not contain a lot of gold. Meanwhile, Centenario coins look great while working well as an inflation hedge.
How to invest in the right bullion coins?
If you are not careful, you may get scammed into buying gold coins. Make sure you know where to buy them. Write down the qualities you need to check in the parts. Here’s how to buy bullion coins:
- Compare the prices – Banks sell bullion coins at a lower price than resellers. You can also buy them online for better deals. However, choose your online seller carefully.
- Seek help from a financial advisor – Make sure they are licensed and knowledgeable about investing in bullion coins.
- Ask other sellers – You might find a seller with lower prices.
- Consult other fees – For example, you may need to buy a safe for your Centenarios. You can’t just put Mexican gold in a piggy bank!
- Look for a certificate of authenticity – You should get proof that your coin is made of the right amount of gold.
Centenario coins are a good investment if you are hedging against inflation. However, its price is unlikely to fall AND rise. If you want to profit from it, other assets might be more suitable.
If you are ready to wait, long-term dividend stocks can help you. They will have a higher value in the long run. Best of all, they provide a constant stream of income.
Please note that this is for informational purposes only. Plan your investments carefully – research the assets yourself. Most importantly, don’t use the money you’re not ready to lose.
Learn more about Centenario parts
How much is a Centenario coin worth?
At the time of writing, the resale price for a 50 peso Centenario coin was $ 2,154.46. Note that this price could change even if it is considered a good hedge against inflation. The coronavirus pandemic is causing unusual economic changes. Still, some people believe that gold will prevail in the long run.
Why are Centenario parts so expensive?
They are highly valued for their gold content, which makes them a good hedge against inflation. People also seek them out because of the coin’s value as a collector’s item. Additionally, demand for gold has increased due to the COVID-19 pandemic. Note that this may change due to unusual changes brought about by the pandemic.
Are Mexican Gold Pesos a Good Investment?
If you are looking to hedge against inflation, investing in Mexican gold pesos might be a good idea. Centenarios and similar coins are made of gold. This means that they are likely to maintain their value even in the face of inflation. However, it may not be a good choice if you want profit.
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