I moved to Mexico over 4 years ago cause I saw it as a country with many opportunities, much more than Canada. Having been a precious metals bull and analyst from 2005 onwards, and now living here, I sometimes wonder what would happen if Mexico just said, “Screw it, we’re backing the peso with Silver.”

Think about it. Mexico is the largest silver producer on the planet, and there are mountains of it here, and it is literally built into Mexico's history. Throughout history, Silver built empires, funded trade routes, and for centuries, it backed real money alongside gold, which Mexico has in abundance.

Now imagine if one day, the Bank of Mexico decided to break ranks and tie even part of the peso to silver. Overnight, the peso becomes one of the strongest currencies in the world. No more fiat currency “faith and credit” nonsense, the western world relies on and holds everyone hostage to, this is real metal, real value, and built empires of the past

The peso would surge very quickly, and we could easily see 10–12 pesos per U.S. dollar, maybe stronger. Sure, exporters would hate a strong MXN Peso, but domestic purchasing power would soar, and Mexicans could actually trust their money again.

Of Course, This is My Pipe Dream, Here's Why It’ll Never Happen and Why, But There Is Still Hope.

Let’s be honest — the U.S. and most central banks would never allow a country to break ranks and back a currency with Gold and Silver. History’s full of examples of how the US entered countries that even suggested and implemented regime change: Gaddafi tried to create a gold-backed dinar; Saddam wanted to sell oil for euros; Venezuela brought home its gold — all faced pressure or worse. The dollar system doesn’t tolerate competition, and the Trump administration is now eyeing Venezuela, and I suspect it's because of the massive amount of resources it has, more than the amount of drugs it exports.

So, no, I don’t see Mexico formally backing the peso with silver. But here’s the thing — Mexico doesn't need to.

Mexico can use its silver advantage strategically. Build industries that use silver — solar panels, electronics, EV components, high-tech manufacturing. That’s how you create a soft silver standard: real value flowing through production and possibly restricting supply, not policies that will create conflicts with the US or Central Bankers.

The Bullish Case for Mexico’s Economy

Even without a silver peg, Mexico is in a powerful position. Up until recently, nearshoring has been reshaping global trade. U.S. and Asian companies were and probably still are moving operations south and building factories, logistics hubs, and supply chains that put Mexico right in the middle of the next manufacturing boom.  While the Trump administration is trying to bring manufacturing back to the US, the labor cost in Mexico alone makes it a much better option.  And even if tariffs are imposed on Mexican goods, this country should focus its export effort on the emerging Latin American markets and Asia.

Foreign direct investment was flooding into Mexico and has slowed down recently. The government’s been relatively disciplined fiscally, which gives investors confidence. The Mexican Stock Exchange (BMV) has been in a bullish uptrend for 20 years. I suspect this will continue higher over the coming decades.

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This feels like the early innings of something bigger, and I fully expect Mexico to continue expanding, and the demographics support this. There is a massive younger population that is entering the workforce or already participating, and they are all hard-working and eager to move up the socioeconomic scale.  So while Western worlds deal with baby boomers and declining birth rates, Mexico still has the foundation for growth over the next 20-30 years.  This will require all sorts of goods and infrastructure spending, which needs resources... and there is a lot of it here in Mexico.

Mexico’s Mining Heavyweights

If you want exposure to the country’s strength and want to start with the miners on the Mexican stock market BMV, these are the companies sitting on the kind of assets the world is starting to value again — real stuff:

• Fresnillo (FRES.MX) – The largest primary silver producer in the world. Massive operations in Zacatecas and Sonora.
• Peñoles (PE&OLES.MX) – The backbone of Mexico’s metals industry. Big exposure to silver, gold, and industrial minerals.
• Grupo México (GMEXICOB.MX) – A copper powerhouse with infrastructure and rail holdings — a broad industrial play.
• Minera Frisco (MFRISCO.MX) – Smaller cap, under-followed, but deeply tied to domestic production cycles.

These companies stand to benefit not only from higher silver prices but demand for resources and from a revaluation of Mexican assets in a world hungry for hard assets and real production capacity.

Here Are My Final Thoughts

Mexico doesn’t have to formally back the peso with silver to win, and most likely, this will never happen. In fact, buying gold and silver coins is difficult in Mexico. I have looked into it, and most Mexicans don't own metals as a store of value; they are mostly invested in Real Estate or running businesses.  However, Mexico, the country, needs to lean into what it already has — resources, manufacturing power, and a growing reputation for stability.

Of course, being a precious metals bull, I would love to see Mexico step up and wish the peso were backed by silver again. The world would take notice, the Peso would strengthen, and it would put Mexico on the map as one of the most fiscally sound countries and currencies.

Until that day comes, I’ll keep stacking a few silver coins, holding quality miners, and staying long on Mexico’s future. Because the next decade might just belong to Mexico and many other Latin American countries. 

Below is my Interview with David Morgan discussing Silver and Mexico's silver mining industry. We also discuss silver miners listed in Canada.

Video Length: 00:36:01

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