Gold Mining Stocks Are Up 43% in August — Their Strongest Month on Record

Gold mining stocks are on track to deliver their strongest month on record in August, outpacing the best month semiconductor stocks posted in April. The MSCI Inc. global gold miners index gained 43% this month.

Bitcoin (BTC) rose roughly 26% over the same stretch, tying both assets to a single macro trade.

Treasury Buyback Plan Revived the Debasement Trade The rally accelerated after the US Treasury said it would double its buyback cap for longer-dated debt to at least $4 billion and push borrowing costs lower. This move revived the debasement trade.

The “debasement trade” refers to moving out of fiat currencies, particularly the dollar, and into scarce assets such as gold, silver, and Bitcoin.  It is based on the idea that persistent fiscal deficits, rising debt, and accommodative monetary policy can erode a currency’s purchasing power over time.