Gold (GC=F) climbed to new records on Wednesday as silver (SI=F) and bitcoin (BTC-USD) continued a run higher. Investors are looking for hedges against mounting government debt and a broader shift away from fiat currencies toward what some analysts have dubbed the “debasement trade.”

Gold futures blew past $4,060 per troy ounce to touch a fresh record, while silver futures (SI=F) climbed to $48.70, their strongest level in decades.

Meanwhile, bitcoin sat near $123,000, hovering just below Monday’s record near $125,790.

The moves reflect a continuation of the so-called debasement trade, in which investors pour into hard assets and crypto to hedge against what they see as the erosion of fiat currency value driven by inflation, heavy government spending, and mounting debt financed by money creation.

Over the weekend, JPMorgan analysts noted the rise in precious metals and cryptocurrencies against the backdrop of the dollar, which has been on a downward trend in 2025. The US dollar index (DX.Y.NYB) is down roughly 9% year to date.

Meanwhile, fiscal uncertainty in developed markets has driven a flight to safe-haven assets. In an unexpected election outcome in Japan over the weekend, Sanae Takaichi was selected to become the country’s next prime minister. Market analysts view Takaichi as a “fiscal dove,” supporting government stimulus to grow the economy.

Takaichi’s election indicates “how much of the developed world is pivoting into a ‘Run It Hot’ fiscal dominance framework, carrying monster deficits in order to try and outgrow debt,” Nomura Securities analyst Charlie McElligott said in a note on Monday morning.

“Accordingly, Gold, Silver and Bitcoin are again simultaneously moving to fresh ATH’s as the chief winners in this latest escalation of the … ‘Debasement Trade,’ alongside equities then too ripping to record highs as well,” he added.

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Gold and silver futures have surged roughly 55% and 65% year to date, respectively, as expectations of Federal Reserve rate cuts have boosted the appeal of metals, which tend to perform better when interest rates are lower.

Last quarter marked the strongest quarter on record for inflows into gold-backed exchange-traded funds. Earlier this week, Goldman Sachs analysts lifted their gold forecast for December 2026 from $4,300 to $4,900 per troy ounce.

“Western ETF inflows and likely central bank buying – are sticky in our pricing framework, effectively lifting the starting point of our price forecast,” Goldman’s Lina Thomas wrote in a note to clients.