Silver vs M2 Money Supply

Since 2006, Silver has shown a nominal return of +215.5%, while M2 money supply has grown by +228.4%. When adjusted for M2 money supply expansion, Silver's real return is -3.9%.

Key Insights

Silver has returned +215.5% nominally since 2006, but -3.9% when adjusted for M2 money supply expansion. This means Silver's price has not kept pace with monetary expansion, resulting in negative real returns.

Performance Summary

Nominal Return
+215.5%
M2 Money Supply Growth
+228.4%
M2-Adjusted Return
-3.9%

Period: May 1, 2006 to November 3, 2025

What This Means

Silver has underperformed M2 money supply expansion, resulting in negative real returns. This means the asset's price has not kept pace with monetary expansion, effectively losing purchasing power over time.

Adjusting stock performance for M2 money supply expansion reveals how much of price appreciation is due to monetary policy versus real value growth. This perspective helps investors understand whether an asset is generating genuine wealth or simply keeping pace with money supply growth.

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