Mon, October 6, 2025 at 3:50 PM UTC
Bitcoin, gold, and silver soar as ‘run-it-hot’ strategies drive investors to safe havens
Both gold (GC=F), silver (SI=F), and bitcoin (BTC-USD) have reached unprecedented heights as the stock market remains near its peak, with investors looking for protection against increasing government expenditures and relaxed monetary policies.
Gold futures approached an astounding $4,000 per troy ounce on Monday, while silver surged to $48.50 per ounce. In the meantime, bitcoin surpassed $125,000 per token, also achieving new records.
The rise in both traditional “analog gold” and “digital gold” comes amid rising concerns about whether the current artificial intelligence surge is inflating stocks valuations reminiscent of the dot-com bubble.
In Japan, stocks (^N225) climbed to new record highs following the weekend election of Sanae Takaichi as the next prime minister by the leading political party. Market watchers consider Takaichi a “fiscal dove,” advocating for government stimulus to boost economic growth.
This unexpected election outcome in Japan further illustrates “the growing trend among developed nations transitioning towards a ‘Run It Hot’ fiscal strategy, embracing significant deficits to promote economic expansion,” noted Charlie McElligott, an analyst at Nomura Securities.
“As a result, Gold, Silver, and Bitcoin are all achieving new all-time highs, becoming the primary beneficiaries in this latest phase of the ‘Debasement Trade,’ alongside equities also soaring to record levels,” he elaborated.
The term “debasement trade” describes how investors are moving towards tangible assets to shield themselves from what they perceive as the diminishing value of fiat currencies due to inflation, significant government expenditures, and debt funded by money creation.
