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:
|Total (Ounces)||Dollar Value||Dollar Value Per Person|
|U.S. Gold Ounces||826,000||$1.6B||$4.79|
|U.S. Silver Ounces||22,261,500||$544M||$1.65|
|U.S. Money Supply||$3.4T||$10,250.16|
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:
|2010||2020 YTD (Jan-Sep)||Min-Max Production, 2010-2019|
|Minted Gold Coins||78oz||61oz||12oz-78oz|
|Minted Silver Coins||1,945oz||1,631oz||899oz-2,633oz|
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?
Ranked: Top Countries for Foreign Direct Investment Flows
Take a look at changes in foreign direct investment flows over a decade, analyzing the top destinations and biggest investors.
One of the most significant phenomena in 21st-century globalization, driven by the ascent of multinational corporations and the removal of investing barriers, is the vast cross-border flow of foreign capital.
To analyze recent trends, Samidha Nayak utilized World Bank data spanning 2012–2022, charting the top 10 destinations for foreign direct investment (FDI) and the leading investing countries annually.
Countries With the Most FDI Inflows (2012–2022)
In 2012, the United States had the highest FDI inflow, attracting about $250 billion in investment from the rest of the world.
At second place, China’s FDI inflows stood about $9 billion lower at $241 billion.
The middle ranks have representatives from Europe (Netherlands, Cyprus), from Asia (Hong Kong) and from South America (Brazil).
Towards the bottom, three OECD countries—Germany, Ireland, and Australia—all attracted an average of $60 billion in foreign investment.
Unexpectedly, the British Virgin Islands came in 8th. Their lack of corporate tax makes it a popular place for companies to headquarter, in turn attracting FDI inflows.
|1||🇺🇸 U.S.||$250.35||1||🇺🇸 U.S.||$388.08|
|2||🇨🇳 China||$241.21||2||🇨🇳 China||$180.17|
|3||🇳🇱 Netherlands||$239.67||3||🇸🇬 Singapore||$140.84|
|4||🇧🇷 Brazil||$92.57||4||🇭🇰 Hong Kong||$120.95|
|5||🇭🇰 Hong Kong||$74.89||5||🇫🇷 France||$105.42|
|6||🇨🇾 Cyprus||$69.97||6||🇧🇷 Brazil||$91.50|
|7||🇩🇪 Germany||$65.44||7||🇦🇺 Australia||$67.12|
|8||🇻🇬 British Virgin Islands||$61.12||8||🇨🇦 Canada||$53.71|
|9||🇮🇪 Ireland||$58.09||9||🇸🇪 Sweden||$50.05|
|10||🇦🇺 Australia||$57.55||10||🇮🇳 India||$49.94|
Ten years later however, the top 10 saw a shuffle. The U.S. and China retained their top spots, but the difference grew much larger—with the U.S. attracting nearly 50% more foreign investment ($388 billion) than China ($180 billion).
Singapore, which first appeared in the rankings in 2014, took third place with $141 billion.
Meanwhile the bottom half changed almost entirely with France, Canada, Sweden, and India replacing Cyprus, Germany, the British Virgin Islands, and Ireland.
Countries With the Most FDI Outflows (2012–2022)
Unlike the ranks of net inflows, the top 10 countries with the highest FDI outflows have stayed essentially the same.
The U.S. topped the list in both ends of the decade, despite briefly falling out of the top 10 entirely in 2018. There were only three new entrants (France, Australia, and the UK) in 2022 compared to 10 years prior, with Cyprus, Switzerland, and the British Virgin Islands dropping out of top spots.
|1||🇺🇸 U.S.||$377.24||1||🇺🇸 U.S.||$426.25|
|2||🇳🇱 Netherlands||$237.94||2||🇩🇪 Germany||$178.87|
|3||🇯🇵 Japan||$117.63||3||🇯🇵 Japan||$175.40|
|4||🇩🇪 Germany||$99.08||4||🇬🇧 UK||$158.93|
|5||🇭🇰 Hong Kong||$88.12||5||🇨🇳 China||$149.69|
|6||🇨🇾 Cyprus||$75.25||6||🇳🇱 Netherlands||$125.89|
|7||🇨🇳 China||$64.96||7||🇦🇺 Australia||$123.36|
|8||🇨🇦 Canada||$62.25||8||🇫🇷 France||$118.76|
|9||🇨🇭Switzerland||$54.30||9||🇭🇰 Hong Kong||$106.86|
|10||🇻🇬 British Virgin Islands||$53.94||10||🇨🇦 Canada||$83.11|
Many of the countries who are in the top ranks for inflows (U.S., China, Canada, Australia) are also in the top ranks for outflows both in 2012 and 2022.
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