The 'debasement trade' is the talk of Wall Street. What is it and is it too late to get in?

Factors ranging from geopolitical tensions to the prospect of lower interest rates to free-spending global governments are pushing the "currency debasement" trade that has led to record highs across risky asset classes. Gold, for one, has scaled to eye-watering heights , surging more than 50% in 2025 as both an inflation hedge and safe-haven play. Similarly, silver and other precious and industrial metals have posted outsized gains, while bitcoin has eclipsed the $120,000 threshold as investors look for bets against the tumbling U.S. dollar continue. "A surge of distrust in fiat currencies, or so-called currency debasement trade, has sent gold to new records," said Alex Kuptsikevich, chief market analyst at FxPro. In short, the debasement trade is a bet that government borrowing and money