Government debt fears push investors toward alternative assets: deVere CEO

Mounting debt levels in major economies including the United States and the United Kingdom are driving a surge of investor interest in alternative assets, says the CEO and founder of deVere Group, one of the world’s largest independent financial advisory and asset management organizations.

“Government debt in leading economies has grown to unsustainable levels,” he says.

“Investors can see what’s coming. When debt piles keep expanding faster than growth, the value of money is quietly diluted, and those holding conventional assets take the hit.”

The US national debt has now climbed above $38 trillion, according to the Committee for a Responsible Federal Budget, and is projected to reach about 125% of GDP by the end of 2025.

In the UK, public sector net debt has risen to 96.4% of GDP, its highest level in more than six decades, while the IMF warns that global government debt could approach 100% of world GDP by 2029.

“These are not abstract figures,” says the deVere chief executive.

“They represent governments borrowing from the future to fund today’s promises. The result is a slow erosion of purchasing power and a growing risk that the world’s largest economies will struggle to finance themselves without constant central-bank support.”

He says this realization is prompting investors to shift away from assets tied too closely to sovereign balance sheets.

“Traditional bonds are losing their defensive value, and cash offers no protection against currency depreciation,” he explains.

“This is why we’ve been seeing renewed demand for tangible stores of value such as gold, silver, and increasingly, digital assets like Bitcoin. These are assets that don’t rely on governments or central banks to maintain credibility.”

Nigel Green describes this movement not as speculative enthusiasm but as a rational response to fiscal overreach.

“When debt keeps expanding and productivity doesn’t, investors know something has to give,” he says.

“They’re reallocating toward assets that can hold value if the dollar, the pound, the euro, and other traditional currencies lose purchasing power. It’s a redefinition of what safety means in a world of structural deficits.”

He adds that the appeal of alternatives now extends beyond retail investors. Institutional funds, pension managers, and sovereign wealth funds are recalibrating their portfolios to hedge against the debt-driven inflation threat.

“When the largest and most conservative investors start allocating to gold and digital assets, it’s a clear signal that this shift is strategic,” he says.

“They’re not chasing volatility; they’re protecting capital from fiscal dilution.”

The imbalance between growth and government borrowing, he argues, has created a policy trap that investors cannot ignore.

“Governments are stuck,” he says. “If they keep rates high to control inflation, debt servicing becomes crushingly expensive. If they cut rates to ease the burden, they weaken their currencies and re-ignite inflation.”

Nigel Green predicts that these conditions will accelerate a global reallocation of capital over the next few years.

“This is the start of a structural shift,” he says. “Investors are positioning for a future defined by scarcity and decentralization rather than by debt and dilution. Precious metals, digital currencies, and certain private assets are becoming core components of modern wealth strategies.”

He believes the adjustment will be long-lasting because the fiscal pressures driving it are not cyclical.

“Neither Washington nor Westminster has the political will to reverse debt accumulation,” he says. “Voters expect high spending, and politicians deliver it with borrowed money.

“This is why this rebalancing toward alternative assets is an evolution.”

Nigel Green concludes that investors should be realistic about what record public debt means for the next decade.

“The smart money including, increasingly, from institutional investors, is already diversifying into alternatives that can outlast the debt cycle.”

About deVere Group

deVere Group is one of the world’s largest independent advisors of specialist global financial solutions to international, local mass affluent, and high-net-worth clients. It has a network of offices around the world, more than 80,000 clients, and $14bn under advisement.