The Fed is expanding the money supply, the implications for gold

Advertisement - This article is distributed on behalf of Fortuna Mining Corp. and Osisko Development Corp., with which SRC swiss resource capital AG maintains paid IR advisory agreements. Publisher: SRC swiss resource capital AG · Author: Ingrid Heinritzi · First published: June 01, 2026, 5:15 p.m. Zurich/Berlin

The M2 money supply in the U.S. now stands (as of April) at $22.804 trillion. The M2 money supply includes cash not held within the banking system, demand deposits held by non-banks (such as checking accounts), deposits with a notice period of up to three months (savings accounts, time deposits), and short-term bonds. The money supply in circulation is thus continuing to grow. At the same time, the Fed is considering possible interest rate hikes to combat inflation. However, money creation fuels inflation.

If the money supply rises while goods and services remain the same, higher prices are inevitable. Fiat money loses value, as do savings in checking or savings accounts. For businesses, the costs of energy, wages, and raw materials are rising. Gold, silver, and other commodities are considered a hedge against inflation.  Thus, gold offers a way out. For whenever fiat currencies have lost value, gold has retained its purchasing power.

No wonder central banks are stocking up on gold. Demand reached a record high (for a fourth quarter) in the fourth quarter of 2025, with total demand of 1,303 tons of gold. ETFs, bars, and coins were popular — and still are. In the global financial system, real, tangible, and stable assets now matter. Private investors, too, should not overlook gold in physical form and as holdings in gold mining companies.

Fortuna Mining (- https://www.commodity-tv.com/ondemand/companies/profil/fortuna-mining-inc/ -) is a successful gold and silver producer with mines in West Africa and Latin America. In the first quarter of 2026, $20 million was returned to shareholders through share buybacks. This also led to new quarterly record results in terms of profit and cash flow. The company is advancing the Diamba Sud gold project in Senegal. Through an agreement with Qstone, Fortuna Mining can acquire a stake in the Quartzstone gold project in Guyana.

Osisko Development (- https://www.commodity-tv.com/ondemand/companies/profil/osisko-development-corp/ -) owns, among other assets, the flagship Cariboo Gold project (Canada, 100 percent). Production at Cariboo (approximately 190,000 ounces of gold annually over ten years) is scheduled to begin in 2027. A 70,000-meter drilling program is currently underway at Cariboo, fully funded, to investigate potential resource growth.

Current company information and press releases from Osisko Development (-  https://www.resource-capital.ch/de/unternehmen/osisko-development-corp/ -) and Fortuna Mining (- https://www.resource-capital.ch/de/unternehmen/fortuna-mining-corp/  -).

You can also find further information in our new Precious Metals Report at the following link: https://www.resource-capital.ch/de/reports/ansicht/edelmetall-report-2025-04/.

Sources: Fortuna Mining, Osisko Development,

https://www.rechnungswesen-verstehen.de/bwl-vwl/vwl/geldmenge.php;

https://trybiut.com/blog/us-geldmenge-rekordniveau-inflation-anleger-strategien-de;

https://finanzmarktwelt.de/gold-neue-daten-zentralbanken-anleger-377790/;

https://www.resource-capital.ch/de/reports/ansicht/edelmetall-report-2025-04/.

Pursuant to Section 85 of the German Securities Trading Act (WpHG) in conjunction with Article 20 of the Market Abuse Regulation (MAR) (EU) 2016/958, we hereby note that authors, employees, and affiliated companies of Swiss Resource Capital AG (SRC) may hold positions (long/short) in the issuers discussed. Compensation/Relationship: IR contracts/advertorials: Author’s own positions: none; SRC net position: less than 0.5%; Issuer’s stake ≥ 5% in SRC: no. Update Policy: no obligation to update. No guarantee regarding the German translation. Only the English version of this news release is authoritative.

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