Introduction and Context
Inspired by the popular Netflix series “Money Heist” (La Casa de Papel), where a group of robbers aims to seize the gold reserves of the Bank of Spain, a similar question arises regarding the Bank of Mexico’s gold reserves.
The Bank of Mexico, responsible for issuing and distributing the Mexican peso, also maintains its reserves. Until two years ago, these included a modest amount of gold worth approximately $8 billion. However, this has since changed.
Gold Reserves Growth at the Bank of Mexico
By November, the Bank of Mexico had accumulated reserves worth $16,182 billion, double the amount from two years prior. This surge suggests that the Banxico might be preparing for a potential downturn.
One possible reason is the weakening of the US dollar, which the Bank of Mexico supports as the primary backing for the Mexican peso’s value. Since Donald Trump became US President, the dollar has lost nearly 10% of its value against major currencies, including the euro.
There are concerns that the dollar may lose more value due to President Trump’s attempts to exert control over the Federal Reserve, the institution responsible for printing and distributing US dollars.
Global Central Bank Trends
As a result of such political pressures, there’s growing speculation that central banks worldwide are accumulating gold as a protective measure against further dollar devaluation. This trend is particularly noticeable in emerging markets, such as Poland, Brazil, and Kazakhstan.
While the Bank of Mexico appears to be following this trend, its gold reserves growth mirrors the increase in gold’s value—approximately 100% from 2023 to 2025. This suggests that the Bank of Mexico is not stockpiling gold but rather adjusting its reserves to reflect the metal’s rising market value.
Implications for Investors
Given the current global economic climate, marked by technological advancements and political uncertainty, investors should focus on practical strategies rather than getting caught up in the noise.
Historically, significant innovations like the railroad, the internet, and now artificial intelligence (AI) have initially sparked financial euphoria, followed by market refinement. While the stock market may continue to exude optimism in the short term, long-term risks are increasing.
Investors should consider diversifying their portfolios, including less glamorous but affordable sectors like utilities, which benefited from the initial AI wave. Additionally, exploring innovative yet accessible tools like V0 (Ve Cero) or n8n could be advantageous.
Key Questions and Answers
- Q: Is the Bank of Mexico accumulating gold? A: The Bank of Mexico’s gold reserves have grown by about 100% over the past few years, reflecting the rising value of gold rather than an increased stockpile.
- Q: Why are central banks around the world accumulating gold? A: Central banks, especially in emerging markets, are accumulating gold as a safeguard against potential dollar devaluation due to political pressures on the Federal Reserve.
- Q: What should investors do in this economic climate? A: Investors should focus on practical strategies, such as diversifying their portfolios and exploring less glamorous but affordable sectors, while keeping an eye on innovative yet accessible tools.
