Peter Schiff has labeled recent spikes in gold and silver prices as warning signs of an impending financial crisis, cautioning that the rally reflects growing economic instability. He argues the trend undermines confidence in fiat currencies and poses risks for Bitcoin as a store of value.
- Gold reached $2,480/ounce in January 2026, up 17% YTD.
- Silver hit $35.60/ounce, its highest since 2021.
- U.S. 10-year Treasury yields rose to 5.1% in January.
- U.S. fiscal deficit for FY2025 totaled $2.3 trillion.
- Bitcoin’s vulnerability to systemic stress cited by Schiff.
- GLD ETF saw 12% inflow; SLV recorded largest weekly volume since 2023.
Gold prices reached $2,480 per ounce in early January 2026, marking a 17% increase year-to-date, while silver climbed to $35.60 per ounce—its highest level since 2021. These movements, according to Peter Schiff, are not driven by speculative demand but by systemic concerns over inflation, monetary debasement, and potential sovereign debt defaults. Schiff, a noted advocate for precious metals, described the price action as a 'harbinger' of broader financial turmoil. The surge in metals coincides with rising yields on U.S. Treasury 10-year notes, which climbed to 5.1% in January, signaling market expectations of prolonged high interest rates. Meanwhile, the U.S. fiscal deficit for FY2025 reached $2.3 trillion, fueling fears of long-term dollar weakness. Schiff argues that when investors flee fiat assets in favor of physical gold and silver, it indicates a loss of trust in government-backed money—historically a precursor to more severe economic disruptions. Despite Bitcoin’s reputation as a digital alternative to gold, Schiff contends it is not immune to systemic collapse. He cited Bitcoin’s price volatility, regulatory uncertainty, and its dependence on centralized exchanges as vulnerabilities during periods of financial stress. During similar historical episodes, such as the 2008 crisis, Bitcoin was not yet available, and Schiff warns that in a modern crisis, digital assets may experience sharp sell-offs as liquidity dries up. The broader market reacted to Schiff’s comments with increased trading in gold futures and silver ETFs. The SPDR Gold Shares ETF (GLD) saw a 12% inflow in the week following his remarks, while the iShares Silver Trust (SLV) recorded its largest weekly volume since mid-2023. Investors in asset management firms, hedge funds, and individual traders are reevaluating portfolio allocations, with some shifting toward physical metals and away from speculative tech assets.