Business & Finance
Dollar (USD) Outlook: What Is the ‘Debasement Trade’ and Why Does It Matter?
Key Points
Explainer Why Wall Street Is Refocusing on the ‘Debasement Trade’ Political and fiscal uncertainty in the US is prompting investors to again turn nervous toward the dollar. As some have offloaded the currency, alternative assets such as Bitcoin and gold have seen their value soar. Wall Street has dubbed this “the debasement trade” — a nod to the historical practice of rulers such as King Henry VIII of England and the Roman emperor Nero, who diluted, or debased, gold and silver coins with...
Explainer
Why Wall Street Is Refocusing on the ‘Debasement Trade’
Political and fiscal uncertainty in the US is prompting investors to again turn nervous toward the dollar. As some have offloaded the currency, alternative assets such as Bitcoin and gold have seen their value soar.
Wall Street has dubbed this “the debasement trade” — a nod to the historical practice of rulers such as King Henry VIII of England and the Roman emperor Nero, who diluted, or debased, gold and silver coins with cheaper metals such as copper. The term captures the idea that investors are seeking refuge from the dollar because of fear it’s being devalued.