U.S. Money Supply vs. Precious Metal Production in the COVID-19 Era #infographic

 

U.S. Money Supply vs. Precious Metal Production in the COVID-19 Era #infographic

Gold and silver have played an important role in wealth throughout history. Unlike modern currencies, they can't be created out of thin air and gain value from their scarcity.

As countries print large amounts of currency to support their suffering economies, in the COVID-19 era, this difference has become more prevalent. This graphic from Texas Precious Metals illustrates how the value of U.S. precious metal coin production compares with U.S. capital growth.

U.S. precious metal coin processing is within a standard historical range, year to date. If production were to continue through December at the current pace, gold at 81 ounces would be above historical levels and silver at 2.175 ounces would be within the usual range.

U.S. dollar issuance tells a different story. The U.S. has now contributed 400 percent more dollars to its money supply over the last nine months than it did in 2019 as a whole, and there are only three months left to go in the year.

Current economic conditions have, of course, been a trigger for the ballooning supply of capital. The U.S. government has released over $3 trillion in fiscal stimulus in response to the COVID-19 pandemic. The U.S., in exchange, From January to September 2020, the Federal Reserve expanded the supply of money by $3.4 trillion.

U.S. Money Supply vs. Precious Metal Production in the COVID-19 Era #infographic

infographic by: www.visualcapitalist.com

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