Two Months Of New Currency In Circulation Could Buy A Stunning Amount Of Silver & Gold

Steve St. Angelo Steve St. Angelo

Steve St. Angelo

May 20th, 2020 Comments

The Federal Reserve issued a RECORD amount of new Currency in Circulation over the past two months. While the financial media has focused on the massive amount of additional “Digital” money printing, the Fed also introduced more new DOLLAR BILLS into the market from March to May than it did all last year.

According to the St. Louis Fed, Currency in Circulation increased a staggering $122 billion from March to May. If we look at the chart below, we can see that the annual increase in U.S. Currency in Circulation ranged between $80 to $100 billion per year. However, the Federal Reserve increased the total Currency in Circulation by $122 billion from March to May:

Total Annual Increase U.S. Currency in Circulation vs March-May 2020

That’s one heck of a lot of new FEDERAL RESERVE NOTES to be issued in just 1/6th of a year. So, how much gold and silver production could this new Currency in Circulation buy? Well, it turns out to be an astonishing amount of silver, nearly a decade’s worth of global silver production.

Amount of Silver & Gold Production Based On New Currency in Circulation from March to May 2020

To arrive at the figures above, I divided $122 billion by $16 for silver and $1,600 for gold. Now, these aren’t the current prices, but an approximate average for the year. The world produces about 800 million oz of silver (2020 World Silver Survey) and 111 million oz of gold (World Gold Council).

Thus, the $122 billion of new U.S. Currency in Circulation would equal the value of nine years of global silver mine supply and nine months’ worth of gold production. And, this is just the increase in physical Federal Reserve Notes, mostly $100 bills.

According to the Federal Reserve’s most recent chart, of the total $1.67 trillion of Currency in Circulation at the end of December 2018, $100 bills accounted for 80% of the total:

U.S. Total Value Currency in Circulation

However, in less than a year and a half, the total U.S. Currency in Circulation is now $1.92 trillion, up from $1.67 trillion on Dec 31st, 2018. And, nearly half of that $250 billion increase took place in the past two months… LOL.

FRED Currency in Circulation (May 13, 2020)

If your eyes are working correctly, you will notice the TREND LINE is virtually heading STRAIGHT UP. So, do you think this will have a positive impact on the precious metals? I believe we are just beginning to see the coming PRICE EXPLOSION in Gold and Silver.

Steve St. Angelo

About the Author:

Independent researcher Steve St. Angelo started to invest in precious metals in 2002.  In 2008, he began researching areas of the gold and silver market that the majority of the precious metal analyst community has left unexplored.  These areas include how energy and the falling EROI – Energy Returned On Invested – stand to impact the mining industry, precious metals, paper assets, and the overall economy.