Inflation, the ECB, and Precious Metals

Inflation means rising prices. Combating it would lead to a number of bankruptcies. Inflation is essentially an increase in the money supply and credit volume. Today’s political system is dominated by government debt. When heavily indebted countries take out loans to pay off debts, that is inflation. In ancient Rome, people used to pay with silver coins. Then more and more base metals were added to the coins, because this allowed more coins to be minted. This increased the money supply and led to inflation. That was in the 3rd and 4th centuries, after which the Western Roman Empire collapsed.

Today, people no longer pay with silver or gold coins. However, these precious metals serve as a store of value, a function that fiat money lacks. Commodities and real assets are becoming increasingly important, especially given that globalization is breaking down. The larger the money supply becomes, the more paper currencies lose value.

At the beginning of the year, the price of gold skyrocketed. Central banks and investors are betting on gold and silver. Most analysts agree on what the future holds for the prices of these two precious metals. Although price fluctuations are greater today than in the past, prices continue to trend upward in the long term. This is because concerns regarding the sometimes-immense levels of government debt persist.

Sierra Madre Gold and Silver – https://www.commodity-tv.com/ondemand/companies/profil/sierra-madre-gold-silver-ltd/ – successfully began production at its La Guitarra project (gold and silver) in Mexico early last year. In 2025, the company produced more than 628,000 ounces of silver equivalent. Additionally, the company has made a second silver mine acquisition in Mexico, which includes three fully permitted underground mines and a flotation plant.

Vizsla Silver – https://www.commodity-tv.com/ondemand/companies/profil/vizsla-silver-corp/ – owns the previously producing Panuco gold-silver project in Mexico. Annual production is expected to reach 15.2 million ounces of silver equivalent. The feasibility study yielded very positive results.

Current company information and press releases from Vizsla Silver (- https://www.resource-capital.ch/en/companies/vizsla-silver-corp/ -) and Sierra Madre Gold and Silver (- https://www.resource-capital.ch/en/companies/sierra-madre-gold-and-silver-ltd/ -).

Further information is also available in our new Precious Metals Report at the following link: https://www.resource-capital.ch/en/reports/view/precious-metals-report-2025-04/

Sources: Vizsla Silver, Sierra Madre Gold and Silver

https://www.youtube.com/watch?v=IErXSsr4gF4;

https://www.resource-capital.ch/en/reports/view/precious-metals-report-2025-04/

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