How The Great Debasement Trade Is Fueling A New Golden Age for Precious Metals

Silver too, has broken through the psychological barrier of $53 an ounce – its highest level since 1980. These are not isolated moves; they represent the re-awakening of an asset class long dismissed as a relic, but now standing at the epicentre of a global financial transformation.

According to Lars Hansen, Head of Research at The Gold & Silver Club, “We’re witnessing a historic shift – a once-in-a-generation capital rotation away from paper promises toward tangible value. This is not a short-term rally. It’s the opening chapter of a decade-long Supercycle.”

The Perfect Storm Behind Precious Metals’ Rise

The surge in Gold and Silver prices has been supercharged by renewed U.S–China trade tensions, Federal Reserve rate cuts and a weakening U.S dollar. Gold has now risen 57% year-to-date, with nearly half of that rally unfolding since August, when the Fed began cutting rates. Traders are pricing in at least two more cuts before year-end – a dovish path that continues to fuel the metals’ momentum.

But the drivers run far deeper than central-bank policy. Global debt has ballooned beyond $37 trillion, deficits are exploding and inflation – though moderated – continues to erode real purchasing power. “We’ve entered the era of permanent stimulus,” says Hansen. “Governments can no longer afford austerity. The only politically acceptable policy is printing. And that’s precisely what fuels the debasement trade – investors seeking protection from the endless dilution of fiat money.”

From De-Dollarization to Trust Breakdown

From Beijing to Brazil, central banks have been dumping U.S dollars and stockpiling Gold at the fastest pace in modern history. This trend – often called de-dollarization – signals waning faith in the global financial order.

As Hansen explains, “This isn’t just a shift in asset allocation – it’s a shift in psychology. Confidence is leaving assets based on trust and moving toward assets based on substance. The market no longer believes governments can protect purchasing power. Investors are building their own defence – one ounce, one bar, one vault account at a time.”

The world’s largest asset managers echo this sentiment. Paul Tudor Jones calls Gold “the trade of the decade.” Ray Dalio speaks of a “paradigm shift” where cash is trash. Ken Griffin of Citadel notes that “the dollar just recorded its steepest half-year decline in fifty years” – while Gold breaks record after record.

The Debasement Trade Becomes The Default Trade

What began as a niche hedge has evolved into a mainstream movement. Pension funds, sovereign wealth funds and family offices are allocating to Precious Metals not for speculation, but for survival.

“The debasement trade is not about getting rich,” Hansen says. “It’s about not getting poor. When inflation eats savings faster than wages rise, when every crisis is solved by printing, when money itself stops feeling real – investors turn to the only assets that can’t be manufactured out of thin air.”

This awakening mirrors the 1970s – when inflation, energy shocks and geopolitical turmoil sent Gold prices surging 2,400% in a single decade. But Hansen believes the current setup is even more powerful: “Back then, debt-to-GDP was under 40%. Today it’s over 120%. The leverage in the system is exponentially greater and so will be the upside for Gold and Silver.”

GSC Analysts Raise Gold Price Target to $5,000

Over the past 15 years, The Gold & Silver Club has built a reputation as the most accurate forecaster of Gold prices, a record well documented across leading financial publications and institutional research reports. The firm’s proprietary models have consistently pinpointed major turning points in both Gold and Silver — earning GSC recognition as a trusted authority among institutional investors and private wealth clients alike.

With Gold above $4,200 and silver topping $53, The Gold & Silver Club has now raised its official 12-month price targets to $5,000 for Gold and $75 for Silver, describing them as “conservative base cases.”

“The question is no longer if we reach $5,000 Gold – it’s when,” Hansen concludes. “This isn’t just another bull market. It’s a revaluation of money itself. Those who recognise that early will capture the greatest wealth transfer of our generation.”

The new Gold and Silver Supercycle has begun. The only question that remains is – are you positioned to profit from it?