The inflation rate of silver, similar to gold, is driven by the mining of new silver. On average, the annual supply increase for silver through mining is around 2% of the existing supply. However, this rate can vary slightly depending on factors like market demand, technological advancements, and changes in mining operations.
So, the approximate inflation rate of silver due to mining is in the range of 2% per year.
and silver both have relatively low inflation rates due to their scarcity and the difficulty of mining, but unexpected discoveries or changes in extraction methods can cause fluctuations. In history, finding large hoards or discovering new mining sources has occasionally led to a sudden increase in the available supply, which could impact the inflation rate.
For example, during the 16th century, after the discovery of vast amounts of silver in the New World (like at Potosí), Europe experienced what is now known as the “Price Revolution,” where the sudden influx of silver led to inflation and a devaluation of currency. Similarly, large gold finds, like those during the California and Australian gold rushes, also affected the economy by increasing the money supply and driving inflation.
So while gold and silver are considered inflation-resistant compared to fiat currencies, their supply—and thus their inflation—can indeed be influenced by factors like archaeological finds or mining technology improvements, making it variable to some extent.