Gold Mining Stocks Soar 43% in August Amid Debasement Trade Revival

Gold mining stocks have recorded their strongest month on record in August, with a 43% gain according to the MSCI Inc. global gold miners index.

This surpasses the best month semiconductor stocks posted in April, which was 27%.

The rally is attributed to the US Treasury's decision to double its buyback cap for longer-dated debt to at least $4 billion and push borrowing costs lower.

This move has revived the 'debasement trade', where investors move out of fiat currencies, particularly the dollar, and into scarce assets such as gold, silver, and Bitcoin.

Copper also set a record close this month due to the same Treasury announcement rippling through commodity markets.