Invest in Argentina Gold 5 Pesos

• A 5 pesos coin from Argentina is minted from .9167 troy ounces of pure gold and is a legal tender coin. The coins are fully backed by the country's full faith and credit.
• Argentina's peso (ARS) has been devalued multiple times, forcing it to borrow heavily from other countries.
• In 2018, Argentina defaulted on its debt, and in 2019, the country entered another recession.

Despite ongoing political unrest, Argentina remains an attractive investment destination. Its top 10 companies are among the most valuable in Latin America, and its gross domestic product (GDP) grew at an average rate of 5.3% per year between 2006 and 2017.
As investors seek diversification away from the U.S. dollar, gold has emerged as an attractive investment. Argentina gold 5 pesos coins are an attractive way to buy and hold gold, as the coins are backed by the country's full faith and credit.

Central Bank Gold Reserves

(CBG)
A smart way to invest in physical gold bullion is to buy coins that are minted by a government or central bank. This often means that the coins are in high demand and tend to hold their value better than privately minted coins.
In 2018, the Argentine government enacted a law that required banks to repatriate 15% of their foreign reserves, which are deposited in the country's central bank. This law helped to push the Argentinian peso down more than 30% in 2018.
For investors, this meant that central bank gold bullion coins became readily available on the open market at a steep discount. In 2019, the government enacted a new law that required gold reserves to be repatriated in 5- and 10-peso coins.
The 5-peso gold coin minted by the Argentine central bank is the only gold coin in the world with a face value of 5 pesos. Each coin contains 0.2835 oz of 99.99% pure gold.

Central Bank Currencies Reserves

According to the World Gold Council, gold reserves held in central bank of central banks are not reported. Rather, reserves are held in private banks and are accounted for on a self-reported basis.
The Central Bank of Argentina reported holding 1.2 million troy ounces of gold in 2021.

Central Bank Currencies Reserves to GDP

Argentina: 0.44%

Investors looking to benefit from a potential move in Argentina's reserves to GDP ratio might consider purchasing the Argentina Gold 5 Pesos ($AU1), which tracks the value of the official currency reserves held by the Argentine central bank. The coin's current price of $1,014.03, for example, represents a decline of $54.01 from the coin's all-time high of $1,062.04. The coin's trading volume of 95,000 shares as of 9:45 a.m. ET, however, suggests investors aren't as bearish on the coin as the price suggests.

Central Bank Currencies Reserves to GDP (Secondary)

The Central Bank of Argentina notes that it has the world's largest gold reserves, holding approximately 192 million ounces of gold, with a reserve-to-GDP rate of 11%. The country's gold reserves have steadily increased since 2004, when Argentinian President Nestor Kirchner first announced his intention to diversify his nation's wealth away from the U.S. dollar.

Central Bank Currencies Reserves to Gold Reserves Ratio (Secondary)

Although Argentina's central bank didn't start accumulating gold until 2013, it currently holds 626.5 tonnes of gold, giving it a gold reserves of 25.3%. The Central Bank of the Republic of Argentina is the fifth largest gold holding central bank in the world. This gold holding level makes its gold reserves to central bank currency reserves ratio (secondary) of 70.1%.

Gold Reserves

The Central Bank of Argentina is responsible for managing the country's gold reserves. These have been increasing since 2015, and were worth $10.4 million as of Nov. 12, 2022.
The gold reserves consist of 2,328 troy ounces (59.34 kg) of gold bullion, 27.1 million troy ounces (718 kg) of gold bars, and 2,031.9 million troy ounces (62,308 kg) of gold certificates.

Gold Reserves to GDP

Although Argentina did not produce as much gold as other major producers, it used its gold reserves to protect the value of its currency. The Central Bank of Argentina issued gold certificates and coins.
The Central Bank of Argentina issued gold certificates and coins for circulation. The certificate system ended in 1931. The Central Bank of Argentina issued gold certificates and coins for circulation.

Gold Reserves to GDP (Secondary)

Country | 2018 | 2019 | 2020 | 2021 | 2022
---|---|---|---|---|---
Argentina | 1.4% | 1.4% | 1.4% | 1.4% | 1.4%
Bolivia | 0.8% | 0.6% | 0.4% | 0.5% | 0.5%
Brazil | 2.6% | 2.5% | 2.6% | 2.7% | 2.8%
Chile | 0.8% | 1.0% | 1.2% | 1.3% | 1.4%
Colombia | 2.6% | 2.6% | 2.6% | 2.6% | 2.6%
Ecuador | 0.8% | 0.9% | 1.1% | 1.2% | 1.3%
Peru | 0.8% | 1.0% | 1.3% | 1.4% | 1.4%
Venezuela | 0.7% | 0.8% | 0.8% | 0.8% | 0.8%
Uruguay | 0.7% | 0.8% | 0.8% | 0.8% | 0.8%
Argentina | 1.4% | 1.4% | 1.4% | 1.4% | 1.4%
Bolivia | 0.8% | 0.6% | 0.4% | 0.5% | 0.5%
Brazil | 2.6% | 2.5% | 2.6% | 2.7% | 2.8%
Chile | 0.8% | 1.0% | 1.2% | 1.3% | 1.4%
Colombia | 2.6% | 2.6% | 2.6% | 2.6% | 2.6%
Ecuador | 0.8%

Gold Reserves to Central Bank Currencies Reserves Ratio

As of 2019, Argentina's gold reserves were estimated at 22.2 million troy ounces, which accounted for 2.6% of its total reserves. The country holds the third largest gold reserves in Latin America, behind Chile and Mexico. However, in terms of gold reserves to central bank currencies ratio, Argentina was ranked second in Latin America, according to the World Gold Council (WGC).

Gold Reserves to Central Bank Currencies Reserves Ratio (Secondary)

(Summer 2021)
Of the ten countries with the top ten gold reserves, Argentina has the lowest ratio, meaning it has the most gold of its own relative to the amount of dollars and euros it holds, according to the World Gold Council.

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Gold Reserves to Central Bank Currencies Reserves

In 2017, Argentina's gold reserves to central bank currency reserves ratio was 1.75%, with a 5-year average ratio of 1.37%. The Argentine government began buying gold in 1975, and its total gold reserves from 1975 to 2017 totaled approximately 440.5 tons.