Aurcana Silver Corp V.AUN.H

RE: peso

[krogh]

Are you talking about fixing the peso to silver in a constant exchange ratio? I consider that extremely unlikely. That would be an exceptionally stupid move, since all prices and salaries would follow the silver market. If silver goes way up, it would make Mexico uncompetitive. It would be impossible to plan salaries ahead etc. Imagine a mexican gold miner without silver credits. They would have revenues tied to gold but cash cost partly tied to silver. What about a car factory? Would they pay their workers in silver. No intenational company would dare to operate in Mexico, since they effectively would be shorting silver through their salary and pension plans. The only way out would be to tie salaries to something else, making the whole point of tying pesos to silver mute.