Although the disappearance of Vargas's gold is the big mystery in the story, the setting of the story is also mysterious. It takes place in the fictional village of Agua Santa, in an indeterminate time. This is how Allende wanted readers to experience the story.

Still, the location is not totally ambiguous. Even though the village is not described as being part of any specific country, several cues in the story, starting with the names of some of the characters—Tomás Vargas and Concha Díaz, to name two examples—indicate a Latin-American setting similar to Allende's own background. Other examples that support this idea include the type of currency used in the town, "pesos," the types of food Vargas's family eats, "cornmeal cakes," and the weather, which is described at one point as "humid and oppressive" even though it is...