Is Gold Cheaper in Mexico?
The world has been battling rising inflation and increasing living costs for a year. In response to this economic change, many items have become costlier. Gold and other rare earth minerals were not left out, as their prices constantly rose in response to market forces.
Does this mean that you cannot get affordable gold jewelry? Of course, there are many places to get high-quality gold at affordable prices. One of them, Mexico, has been famous for ages. We will answer some of these questions: Is gold cheaper in Mexico? What about the quality? What’s the price like in Mexico? Let’s do a reality check.
If you’re after alternative places for jewelry shopping that won’t break your purse, read further. In addition, this article covers other precious minerals you can get in Mexico.
Should Gold Be Cheaper in Mexico?
Mexico lies between the United States to the north and the Caribbean Islands to the south. Moving further south on the map, you’ll reach the South American continent.
From history, you might remember that Christopher Columbus, the great explorer, described the Caribbean Islands as “flowing with gold and other rare pieces of jewelry.”
The ancestors of present-day Mexicans were known for gold crafting. They created many sacred items of worship, from gold, silver, and other valuable minerals. In addition to gold flowing in from trade across the Caribbean, Mexico has large deposits of these minerals.
Ancient Mexicans adorned their kings and gods with gold. They also used it to show their status in society.
Fast forward to this day, gold is still very valuable, and its price keeps going up with rising inflation. Like in the ancient days, gold still finds relevance in making jewelry, ornaments, and medals.
Given where Mexico lies on the map and the flow of gold in the Caribbean, one should expect a very low price. Unfortunately, increasing demand for gold items and a modest supply have made the cost of gold in Mexico similar to what you can get elsewhere.
So, is gold cheaper in Mexico? Yes, slightly cheaper. You could save a couple of bucks when buying gold in Mexico.
Relative Prices of Gold in Mexico
The Mexican government owns most of the mines and controls the refining process. Labor is cheap too. This way, they remove extra costs from intermediaries in the supply chain – which means cheaper gold. Six states have abundant gold deposits that provide enough for making jewelry and craft.
One ounce of 18-karat gold costs about $40.20, one ounce of 14-karat gold costs around $31.28, and one ounce of 10-karat gold costs about $22.34.
Note that this price estimate could change anytime.
What About the Quality of Gold in Mexico?
Like any other mineral, gold has several grades based on the purity and refining process. The international standard for grading gold uses the karat system. The higher the value, the purer the gold.
You can get gold with grades as high as 18 karats in Mexico, with 8 karats being the lowest. These high values result from local artisans’ unique decades-old refining techniques.
Other Cheap Minerals You Can Get in Mexico
Gold might not be as cheap as you expect, but there are some minerals you can get for as much as 50% off the global price in Mexico. Let’s look at them below:
- Silver
Throughout history, Mexico has been famous for its silver mines and jewelry. At one point, silver made up the bulk of Mexican exports. This mineral also gave the Spanish wealth when they occupied Mexico during the colonial era.
Today, silver jewelry floods the streets of Mexico and has become a point of attraction for tourists and locals alike. You’ll also find silver in Mexican arts and culture as silverware and ornaments.
Some street vendors also display fake silver for the price of real silver. It’s not hard to mistake inferior silver for a genuine one, so always look for the 925 or 950 imprints on the jewelry.
In addition, the silverware should have a “Mex” or “Mexico” stamp, which is further proof of quality.
- Diamonds
Diamonds are another mineral you can get at a lower price in Mexico. Unlike places like the United States, where diamonds are very costly, Mexico’s demand for this precious mineral is low. As a result, supply exceeds demand for diamonds, bringing down the price.
Mexico has a large store of diamond deposits, and the government mines these minerals – like silver. Most diamonds find their way into jewelry, forming elegant pieces – when combined with gold or silver.
These ornaments are a tourist favorite, and you should consider getting one for yourself anytime you visit Mexico.
Frequently Asked Questions
- Is gold in Mexico good?
The government oversees gold mining in Mexico which improves its availability. Local artisans and goldsmiths craft most of the gold jewelry you’ll find for sale using century-old techniques. This method removes a lot of impurities and preserves the quality.
So, Mexican Gold – in the form of gold bars, jewelry, ornaments, or goldware, has a very high quality.
- Is Mexico good for shopping?
Besides getting cheaper gold, silver, and diamond jewelry, Mexico is one of the cheapest for shopping. You can get many items at a discounted price compared to global prices. Mexico is a favorite tourist location, and the increased revenue for holiday trips helps lower prices for many goods.
As a result, you should try shopping not only for gold but other items whenever you visit Mexico.
- Is gold cheaper in the US?
Compared to Mexico, Gold is more expensive in the US. There are several reasons for this price difference. Firstly, there is more demand for gold jewelry and ornaments in the US. Secondly, the economic environment in the US favors higher gold prices. Notwithstanding that the US has more gold reserves than Mexico, cheaper labor costs in the latter also help both locals and tourists get lower prices.
- What Karat is Mexican Gold?
Karat is a unit that measures the degree of purity of gold and other precious minerals. The higher the value, the purer the substance. Generally, you’ll find gold around 10-karat and 14-karat from local craftsmen and artisans. Sometimes, one may find as much as 18-karat gold.
Wrapping Up
If you’re looking for places where you can get cheaper gold, Mexico has you covered. The quality of Mexican gold also makes the price mouth-watering compared to global prices. So, is gold cheaper in Mexico? Yes, you’d save some bucks when trading gold in Mexico.
