JPMorgan’s analysis, led by Nikolaos Panigirtzoglou, indicates a fundamental shift in investment strategies as both gold and bitcoin gain structural importance in portfolios. The bank notes that gold’s recent price movements have surpassed levels typically explained by dollar movements and real bond yields, suggesting a deeper adoption of the ‘debasement trade’ – where investors seek protection against fiat currency devaluation. This trend is evidenced by growing gold holdings among central banks and private investors through various vehicles including physical gold and ETFs, representing an increasingly significant portion of non-bank global assets. Simultaneously, cryptocurrency markets experienced record capital inflows in 2024, reinforcing bitcoin’s role as a hedge against inflation, mounting government debt, and geopolitical instability. JPMorgan’s assessment suggests this isn’t a temporary phenomenon but rather a lasting change in investment approach as concerns about currency debasement persist.