Peter Schiff, a prominent gold advocate and critic of fiat money, warns of the US dollar’s impending loss of reserve status to gold.
According to Schiff, the reign of the dollar as the world’s primary reserve currency is coming to an end, as he forecast a crash against other currencies and a resulting economic collapse that ends America’s global financial privileges.
In a post on X, he wrote,
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“King dollar’s reign is coming to an end. Gold will take the throne as the primary central bank reserve asset. That means the U.S. dollar will crash against other fiat currencies, and America’s free ride on the global gravy train will end. Prepare for a historic economic collapse.”
Schiff’s warning comes amid rising inflation, growing national debt, and increased volatility in global currencies, signaling a potential turning point in the balance of economic power.
Supporting trends include central banks’ record 2025 gold purchases, such as 53 tonnes in October amid prices exceeding $4,000/oz, alongside a slight decline in the dollar’s IMF-reported reserve share to 56.92% in Q3, signaling gradual diversification away from USD dominance.
In an earlier post, Schiff had pointed to a dramatic rally in precious metals with gold jumping nearly $50 to just under $4,530 and silver soaring by $3 to trade near $75 as a clear signal that inflationary pressures are far from over.
According to Schiff, such a powerful and record-breaking rally does not occur in an environment where inflation is genuinely cooling and heading back toward the 2% target widely cited by central banks. Instead, he argues, the price action in gold and silver reflects deeper economic stresses that markets are already beginning to price in.
He wrote,
“Gold and silver are ripping. Gold spiked $50, almost hitting $4,530. Silver rocketed $3.00, trading 10 cents below $75. If you think this record-breaking precious metals rally is taking place in a world where inflation is headed back down to 2%, you are in for a rude awakening.”
Schiff has long maintained that gold and silver serve as a referendum on fiat currencies, particularly the U.S. dollar. The sharp rise in their prices, he argues, signals declining confidence in paper money amid rising debt levels, persistent deficits, and years of loose monetary policy.
By warning of a “rude awakening,” he implies that the purchasing power of fiat currencies is eroding more rapidly than many investors realize. In this context, gold and silver are not merely speculative trades, but defensive assets against long-term currency debasement.
Also, Jurrien Timmer, a prominent market analyst specializing in asset allocation and global macro strategy, has stated that Gold is firmly in a bull market, up roughly 65% year to date, outperforming global money supply growth. He adds that during the recent correction, gold has held onto most of its gains, which he views as characteristic behavior of a bull market.
US President Donald Trump’s aggressive moves to reshape global trade as well as his threats to the Fed’s independence added fuel to the bull run earlier this year. Recent reports reveal that Gold which has continued to surge, is already up 70% in 2025.
“The dominant drivers for both gold and silver right now are the combination of sustained physical demand and renewed sensitivity to macro risk,” said John Feeney, business development manager at Guardian Vaults, a Sydney-based bullion dealer. “We’re seeing momentum reinforced rather than capped, which suggests underlying conviction rather than purely speculative froth.”
Notably, hopes for further Fed rate cuts are pushing investors toward non-yielding assets like Gold and Silver. A weaker US dollar and softer treasury yields are giving Gold a fresh lift, making it cheaper and more attractive for buyers.
Meanwhile, global markets are betting heavily on the Fed to continue its rate-cutting cycle into 2026 to ease the borrowing costs further.
According to investors, Gold recent surge to a historic, has reaffirmed its status as a safe-haven asset at a time of mounting global uncertainty, while Bitcoin continues to struggle to regain bullish momentum.
The divergence between the two assets has reignited the long-running debate over Bitcoin’s role as “digital gold,” with longtime crypto critic Peter Schiff seizing the moment to declare that the Bitcoin bull run is over.
As investors reassess risk amid tightening financial conditions and volatile markets, many argue that capital is flowing back to traditional stores of value leaving Bitcoin lagging in gold’s shadow.