JPMorgan and Goldman Sachs are on board... Gold and bitcoin prices are rising... This should sound familiar... A trend too powerful to stop... How to protect and grow your wealth during the 'great devaluation'...
It's official: Even Wall Street sees the dollar's decline coming...
In a research note last week, analysts at banking giant JPMorgan highlighted what they called the "debasement trade" – a strategy to hedge against the U.S. dollar and other fiat currencies weakening. As Ryan McMillin of Merkle Tree Capital shared...
Their analysts argued that persistent fiscal deficits, high government debt levels, and an era of monetary expansion have set the stage for investors to seek stores of value outside the traditional fiat system.
Those stores of value include gold and bitcoin.
A few analysts, led by JPMorgan's Nikolaos Panigirtzoglou, shared a model suggesting bitcoin is undervalued compared with gold if you think the "debasement trade" is going to continue.
JPMorgan said the world's most popular crypto would need to climb about 40% – to roughly $165,000 – to match the "volatility adjusted" value of privately held gold. That estimate assumed gold was trading below $4,000 per ounce at the time.
However, investors are also rushing into gold. Yesterday, gold traded above $4,000 per ounce at another new record high. It has been making new all-time highs for the past two months.
Earlier this week, Goldman Sachs raised its year-end 2026 gold forecast from $4,300 to $4,900, citing falling interest rates, rising inflows to gold-backed exchange-traded funds, and continued central bank buying.
This should sound familiar...
We've been writing about the U.S. dollar devaluation story for years... And we've encouraged you to own "hard asset" alternatives to protect and grow your wealth, along with high-quality stocks.
In our August 7 edition, Stansberry Research Senior Partner and MarketWise CEO Dr. David "Doc" Eifrig spelled out his case for the "great national devaluation."
In the piece, titled "History's Most Expensive Mistake Is Happening Again," Doc shared a few past examples of inflation running rampant in societies... explained why monetary policy was at the heart of it... and revealed that the same thing is happening again today. He wrote...
We're living through a great national devaluation.
Your money is worth less than ever before. Your labor is worth less.
You know what this devaluation feels like – in big and small ways across American life.
It's the little surcharges on restaurant bills... the packages on store shelves that get gradually smaller for the same price... and higher premiums for the same health insurance.
Now, the idea is hitting the mainstream – with the biggest bank by market cap in the world sounding the alarm about a devaluation.
But first, let's hand out some kudos...
A few weeks ago, Stansberry Research analyst Mike Barrett explained why gold could hit $5,000.
In short, gold has big tailwinds behind it, as Federal Reserve-dictated short-term interest rates head lower, inflation remains high(er), and "real" interest rates make owning bonds even less appealing as a safe store of value.
Analyst Bill McGilton also showed that central banks are buying...
For the first time since 1996, foreign central banks are holding more gold than U.S. Treasurys. And that's not by accident.
As the U.S. fiscal problem becomes more acute, we expect central banks' gold holdings to trend higher.
Central banks are navigating massive government debt, a global trade war, monetary expansion, inflation, and geopolitical conflicts.
It's no wonder, central banks have been net gold purchasers for the past 15 years in a row. And they're buying a lot more lately...
Poland, Azerbaijan, Kazakhstan, China, and Turkey have been the largest purchasers in 2025 so far. And China, India, and Russia are among the countries specifically increasing their gold reserves to reduce their reliance on U.S.-dollar assets.
Gold is up around 50% year to date and 8% over the past month. And these tailwinds should keep the price pressure in place.
As for bitcoin...
Crypto Capital editor Eric Wade has said bitcoin could hit $200,000 or higher this year... with the continued devaluation of the dollar as a major catalyst, given bitcoin's fixed-supply design.
At the start of 2024, when bitcoin was trading for around $40,000 and surrounded by dour sentiment, Eric urged all Stansberry Research readers not to miss the bull market in cryptos.
Back then, Eric said Wall Street institutions getting more involved in cryptos would be a huge tailwind. Bitcoin's four-year-cycle history also suggested higher prices ahead.
Today, bitcoin is trading near a new all-time high. It hit $125,000 earlier this week, and JPMorgan is publishing pieces that list the crypto alongside gold as a store of value to own amid the devaluation of the dollar.
My, how far we've come...
JPMorgan CEO Jamie Dimon once described bitcoin as worthless, a "pet rock," and a "decentralized Ponzi scheme." But now, the firm's clients have access to bitcoin in their accounts, because JPMorgan can make money from it given client demand. I give Dimon some credit for hating bitcoin personally but capitulating professionally – even if the reason is obvious.
Kudos to Eric and our team for being well ahead of the curve. And congrats to Crypto Capital subscribers who have profited along the way. Over the years, Eric has delivered the most 10X winners in the history of our company.
Too powerful to stop...
Now, the fact that Wall Street institutions are finally catching on to the great devaluation trade makes me (Corey McLaughlin) think that it could be overdone – at least in the short term.
But with long-term trends in place (like the mere existence of fiat currency and politicians' willingness and ability to devalue it), this story is far from over.
For one thing, the Fed has signaled more rate cuts through the end of the year, and these cuts could continue after Fed Chair Jerome Powell's term ends in May and President Donald Trump replaces him.
And remember those tariffs? They have brought in an estimated $250 billion in revenue for Uncle Sam... But as much as that is, it's a fraction of the estimated $3.5 trillion increase to the fiscal deficit over the next decade from the "big, beautiful bill" passed earlier this year.
Then there are questions about what happens with that tariff revenue. Barron's recently reported on new White House plans to spend that revenue rather than use it to lower the U.S. debt...
President Donald Trump in recent weeks has outlined plans to tap tariff revenue – in part to aid farmers hurt by the trade battle – drawing on the funds that the administration had said would go toward paying down the country's $37 trillion debt load and fiscal deficit...
Beyond logistical questions about what authority the administration may use to allocate that revenue, there is the question of how the bond market will react to tariff revenue being redirected away from lowering the deficit.
High on the list of proposals is a bailout for farmers, particularly soybean farmers in Iowa who have been hit hard by tariff fallout. China, which had been the largest buyer of U.S. soybeans – buying 61% of the crop – has stopped buying them and put a 20% tariff on U.S. agricultural imports.
There's also a big Supreme Court case coming up next month to decide if the "reciprocal" tariffs under the International Emergency Economic Powers Act, which have generated $80 billion, are legal.
That money might be going back to businesses. That's potentially good news for these firms and stocks, but it's not so great if you're interested in stopping the erosion of the dollar as U.S. debt grows even larger and a big chunk of the tariff story gets unwound. The size of the U.S. debt is already nearly 120% of the country's GDP. We could go on.
Clearly, there are plenty of reasons why the 'debasement trade' can keep going...
Doc says what's happening now is a "controlled demolition of the existing monetary order," but he concluded in our August 7 edition...
The truth is that no matter who's in charge, inflation isn't going anywhere anytime soon...
This devaluation has been happening for decades.
And while mainstream headlines focus on inflation and interest rates, we're experiencing a financial reset that erodes purchasing power and ruins traditional strategies like holding bonds and cash.
To help investors prepare, I'm introducing a new investment blueprint designed specifically for an era of currency devaluation.
Rather than rely on outdated approaches, this strategy centers on hard assets, select inflation-resistant companies, and a fully diversified portfolio to protect and grow wealth.
Don't sit still while your dollars lose value... Take action now.
Doc says Americans could see their retirement savings lose 40% in value during the great devaluation. But those who make the right moves could potentially see gains from 500% to 1,000% in the long term.
If you're interested in Doc's full analysis about the great devaluation and his blueprint for how to position your portfolio to protect and grow your wealth, check out his free presentation here. (Retirement Millionaire and Stansberry Alliance members can find this research here).
You'll learn more about Doc's three key investment plays (including his top gold stock recommendation) as the dollar devaluation erodes purchasing power and ruins conventional strategies like holding bonds or cash. Again, you can learn more here.
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New 52-week highs (as of 10/8/25): First Majestic Silver (AG), Arista Networks (ANET), Alpha Architect 1-3 Month Box Fund (BOXX), BWX Technologies (BWXT), Constellation Energy (CEG), Ciena (CIEN), Crispr Therapeutics (CRSP), iMGP DBi Managed Futures Strategy Fund (DBMF), Donaldson (DCI), iShares MSCI Emerging Markets ex China Fund (EMXC), Equinox Gold (EQX), Ero Copper (ERO), Comfort Systems USA (FIX), VanEck Gold Miners Fund (GDX), VanEck Junior Gold Miners Fund (GDXJ), SPDR Gold Shares (GLD), Hershey (HSY), iShares Biotechnology Fund (IBB), iShares U.S. Aerospace & Defense Fund (ITA), L3Harris Technologies (LHX), Lynas Rare Earths (LYSDY), Monster Beverage (MNST), Intellia Therapeutics (NTLA), Ormat Technologies (ORA), abrdn Physical Palladium Shares Fund (PALL), Palo Alto Networks (PANW), Sprott Physical Gold Trust (PHYS), Sprott Physical Silver Trust (PSLV), Royal Gold (RGLD), ProShares Ultra Technology (ROM), Seabridge Gold (SA), Sandstorm Gold (SAND), Sprott (SII), Skeena Resources (SKE), iShares Silver Trust (SLV), SPDR Portfolio S&P 500 Value Fund (SPYV), Torex Gold Resources (TORXF), Uranium Energy (UEC), ProShares Ultra Gold (UGL), ProShares Ultra Semiconductors (USD), Vanguard S&P 500 Fund (VOO), W.R. Berkley (WRB), Industrial Select Sector SPDR Fund (XLI), Utilities Select Sector SPDR Fund (XLU), and SPDR S&P Semiconductor Fund (XSD).
A quiet mailbag today... Do you have a comment or question? As always, e-mail us at feedback@stansberryresearch.com.
All the best,
Corey McLaughlin
Baltimore, Maryland
October 9, 2025
