Bitcoin, gold, and silver surge as 'run it hot' policies fuel flight to safety

Core Insights - Gold, silver, and bitcoin have surged as investors seek protection against rising debt and political uncertainty in developed markets [1][2] - The "debasement trade" is highlighted, with investors moving into assets to guard against the erosion of fiat currency value due to inflation and heavy government spending [2][4] - Fiscal uncertainty in developed markets, particularly following Japan's unexpected election outcome, has driven a flight to safe-haven assets [3][4] Market Performance - Gold futures approached $4,000 per troy ounce, while silver futures reached $48.50 per ounce, nearing a 1980 intraday high [1] - Bitcoin surged about 2% to a record above $125,790 per token, marking a significant increase [1][5] - Year-to-date, gold and silver have surged more than 50% and 60%, respectively, while bitcoin is up roughly 33% [5] Economic Context - Analysts note that the US dollar index has declined over 9% year to date, contributing to the rise in precious metals and cryptocurrencies [2] - The election of Sanae Takaichi in Japan is seen as a shift towards fiscal stimulus, which may influence market dynamics [3][4] - The ongoing US government shutdown has intensified the narrative of bitcoin as a safe haven, with investors rotating from US-related assets into more resilient options [6]