U.S. Precious Metal Coin Production in the COVID-19 Era

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

In the COVID-19 era, this difference has become more prominent as countries print vast amounts of currency to support their suffering economies. This graphic from Texas Precious Metals highlights how the value of U.S. precious metal coin production compares to U.S. money creation.

Year to Date Production

In this infographic, we have calculated the value of money supply added as well as bullion minted, and divided it by the U.S. population to get total production per person. Here’s how the January-September 2020 data breaks down:

Gold and silver dollar values based on Oct 5, 2020 spot prices of $1,915.93 and $24.47 respectively.

The value of new U.S. money supply was more than 2,100 times higher than the value of new gold minted. Compared to minted silver, the value of new U.S. money supply was over 6,000 times higher.

Production Per Day, Per State Over Time

Here’s how production has changed on a per day, per state basis since 2010:

Year to date, U.S. precious metal coin production is within a normal historical range. If production were to continue at the current rate through December, gold would be above historical norms at 81 ounces and silver would be within the normal range at 2,175 ounces.

The issuance of U.S. dollars tells a different story. Over the last nine months, the U.S. has already added 400% more dollars to its money supply than it did in the entirety of 2019—and there’s still three months left to go in the year.

A Macroeconomic View

Of course, current economic conditions have been a catalyst for the ballooning money supply. In response to the COVID-19 pandemic, the U.S. government has issued over $3 trillion in fiscal stimulus. In turn, the U.S. Federal Reserve has increased the money supply by $3.4 trillion from January to September 2020.

Put another way, for every ounce of gold created in 2020 there has been $4 million U.S. dollars added to the money supply.

The question for those looking for safe haven investments is: which of these will ultimately hold their value better?

The Emotional Impact of COVID-19 on the U.S. Population

The COVID-19 pandemic has ripped through almost every country on the planet, causing devastating decay to the mental health of millions of people.

While most of us are experiencing higher levels of emotional distress than normal, the severity of stress may change based on factors such as age, race, education level, or even where you live.

This graphic uses data from the National Pandemic Emotional Impact Report to illustrate how each demographic subgroup in the U.S. is feeling.

The Methodology

The emotional upheaval of such a unique event impacts people in different ways, and is difficult to measure given the many direct and indirect factors associated with it.

For the report referenced in the graphic, researchers created a detailed methodology to measure the impact of COVID-19 across a sample of 1,500 adults. Surveys were conducted in May 2020, when the majority of people were under strict lockdown orders. Unemployment levels mirrored those seen only during the Great Depression, and of course, the death rate was rising quicker than anyone could have anticipated.

A Pandemic Distress Index Score (PDIS) was calculated based on participant’s responses, which were then divided into low (bottom 25%), moderate, and high (top 25%) quartiles of pandemic distress.

Emotional Distress Levels, by Demographic Group

Findings uncovered that almost 40% of participants have lost their jobs, or experienced a reduction in income due to the COVID-19 outbreak. However, the reverberations of such stressors vary by demographic subgroup.

Age

According to the report, pandemic-related emotional distress decreases by age group. People in the 18-34 year bracket reported the most pandemic-related distress overall—with respondents citing high stress at nearly double the rate of people over 50 years old. Meanwhile, respondents in the 65+ age group had reported the lowest distress scores of all.

Race

Of all ethnicities in the survey, Hispanics/Latinos and Blacks had the highest average Pandemic Distress Index Scores, and Whites had the lowest average scores.

It is also worth noting that the research concluded five days after the death of George Floyd, so the majority of responses may not include the influence of this event, and the subsequent movement against systematic racism.

Other Categories

In other subgroups, there were slight differences worth mentioning. For example, from a communities perspective, people who live in rural areas were less likely to experience high pandemic distress compared to people living in towns or cities.

When it comes to the battle of the sexes, men and women experience similar levels of distress. Moreover, the level of emotional distress related to COVID-19 did not differ much between people with children under 18 and those with older children. However, women with children under 18 reported more symptoms of anxiety compared to women with no minor children.

What Does the Data Mean?

While the research presents several important insights, understanding what it means is crucial in providing people with the support they need.

For example, participants with high pandemic-related distress are 40 times more likely to have clinically significant levels of anxiety and 20 times more likely to have clinically significant symptoms of depression, compared to those on the lower end of the spectrum.

In fact, a report from the Center for Disease Control and Prevention shows that 1 in 4 people in the 18-24 age bracket have seriously considered committing suicide at some point during the month of June 2020, which is in line with the emotional distress scores for this age group.

Building Immunity

While nobody can escape the devastating impacts of COVID-19 on mental health, it is clear that some people are more at risk than others.

Unfortunately, younger adults and people of racial and ethnic minorities have carried higher psychological burdens from the pandemic so far, and we have yet to see the long-term effects that could transpire as a result.

“Even when the pandemic is brought under control, grief, anxiety and depression will continue to affect people and communities.”

—António Guterres, United Nations

Although at times the pandemic may feel inescapable, we must continue to prioritize both our physical and mental health—so we can build immunity for what’s to come.