A Time of Gratitude and Opportunity

The run-off election looks tight in Argentina, where I’m attending a Young Presidents’ Organization (YPO) event in Buenos Aires. The two candidates, Economy Minister Sergio Massa and libertarian outsider Javier Milei, are polling relatively close, with Milei enjoying a slight advantage.

It’s an understatement to say that Argentine voters are not happy with the state of the economy. The number one issue on people’s minds right now is out-of-control consumer prices, which rose at an annual rate of 142.7% in October, if you can believe it.

When I visited Argentina in August, just three months ago, one U.S. dollar was valued at 270 pesos. Today, on the black market, a greenback will get you over 1,000 pesos, if you can believe it. As a result, gold priced in ARS is at an all-time high of approximately 700,000 pesos, up 4.6 times from just three years ago.

gold priced

Milei has a plan. The wild-haired author and economist says that, if elected, he will dump the peso for the USD and restore stability to the country. He’s also in favor of real assets such as gold and Bitcoin, joining a growing number of world leaders that have expressed support for the world’s leading cryptocurrency.

Even though it’s difficult for most Argentines to get their hands on U.S. dollars, they like paper money as a store of value. In India, as you know, families prefer gold, with Indian women owning six times more gold than can be found in Fort Knox.