Although dollarization is considered by some as the only solution to end the present economic crisis, most of the economists have not seriously considered the adoption of silver as a national currency. Because of the present economic situation, people have not had time to think about the subject. The intention of this essay is to inform all those who until now have not reflected on this proposal. I believe Mexico should adopt a silver standard because Mexico is the biggest producer of silver in the World, Mexico has had success using the silver standard in the past, and silver is a standard without risks.

The first reason why Mexico should adopt a silver standard as national currency is because Mexico is the biggest producer of silver in the world. This metal has been extracted since the colonial times during which Spaniards considered silver more valuable than gold. Although a great amount of silver has already been mined, there is much left. For this same reason, Mexico would also see its silver currency as a product to sell.

The second reason why the adoption of a silver standard would be good for Mexico is because silver has already been used as currency in the past. During the colonial times and in the independent one also, silver was used as the main instrument of trade. Often we heard of our grandparents, "The silver currencies were those that had value." Although during those periods Mexico had serious economic problems, these problems were not because of an unstable currency, but by lack of capital and political problems. These antecedents take us to another conclusion. Silver is also a component of our identity. Can you say the same about the dollar? I don't think so.

The main reason why Mexico should adopt the silver standard is because silver is a standard without risks. The money in silver that a Mexican worker gains today is going to have the same value tomorrow. When a country has a stable currency, saving is increased. And in the same way, the foreign investors are attracted to save their money in this country. The increasing of money in the banks makes the economy of a country strong. If the banks have more money, then they can make more loans which people can invest in Mexico's development. As these investments increase, our GNP, which is an indicator of our economic health, will rise. Silver would bring us benefits.

If you have not seriously considered the benefits of adopting silver as our national currency, what are you waiting for? Think about the reasons why we should adopt the silver standard and why it is a good solution for the economic crisis. Then ask others to do the same. If the Mexican population does not think and talk about this proposal, the government will not have any pressure to do it. Any moment would be a good time to put this plan in action. Although at this moment there is a lot of capital in Mexico, we do not have to wait for another devaluation. It is certain that silver is one of many alternatives, but it is the safest. Why don't we adopt the silver standard?

HOME