The Debasement Trade discussion has become a popular topic on the financial news outlets. I thought I knew what it meant, but I wanted to dig deeper to understand better – and also tell you about funds like the Kurv Gold Enhanced Income ETF (KGLD), writes Tim Plaehn, editor of The Dividend Hunter.
A query using AI produced this: “The debasement trade is a financial and investment strategy that gained significant attention in 2025 and into 2026, particularly on Wall Street and among macro investors. It refers to investors shifting capital away from fiat currency-denominated assets (especially US dollar-based ones like cash, US Treasuries, and other traditional fixed-income securities) and into ‘hard assets’ or scarce, non-dilutable alternatives.”
Kurv Gold Enhanced Income ETF (KGLD)
I have several thoughts on the topic. First, I think gold and silver will continue to gain in value. In my newsletter portfolios, I have added more exposure to precious metals.
Second, from my experience, bond funds have long been a good place to put a dent in your wealth. The nature of these funds makes them dangerous as interest rates change. There are very few bond funds that will generate solid positive returns for investors. The Infrastructure Capital Bond Income ETF (BNDS) is one I recommend to my subscribers.
As US-based investors, we live, operate, and invest in a dollar-based economy. It is not a viable strategy to completely withdraw our investments from dollar-denominated securities.
But the debasement investment strategy can be applied to a small portion of an investor’s portfolio. The easiest way to do so would be to get exposure to gold and silver. KGLD and the Kurv Silver Enhanced Income ETF (KSLV) use option strategies to pay monthly dividends (in cash), plus they are managed to outperform the underlying precious metals.
