Economist Peter Schiff Predicts Dollar’s Decline and Gold’s Rise

Renowned economist Peter Schiff has issued a dire forecast regarding the future of the US dollar, predicting a significant economic downturn that could see gold emerge as a dominant reserve asset. In a recent post on X, Schiff warned that the dollar’s long-standing status as the world’s primary reserve currency is at risk, potentially leading to what he terms a “historic economic collapse.”

Schiff emphasized that the reign of “King dollar” is drawing to a close. He stated, “Gold will take the throne as the primary central bank reserve asset,” suggesting that a shift of this magnitude would result in a rapid decline of the dollar’s value against other currencies. He characterized this transition as the end of America’s “free ride on the global gravy train.”

The remarks from Schiff, who serves as the chief strategist at Euro Pacific Asset Management, reflect broader economic trends that he argues indicate waning confidence in the dollar. He cited several key indicators, including rising gold prices and a noticeable decrease in central banks’ holdings of US Treasuries. These developments, he contended, are signs of an eroding trust in the greenback.

Precious Metals Rally Amid Economic Uncertainty

Schiff’s comments coincide with a notable rally in precious metals. According to a report from Bloomberg, gold, silver, and platinum reached record highs recently, bolstered by increasing geopolitical tensions, a weakening US dollar, and lower trading volumes. On that day, spot gold surged as much as 1.6 percent, trading above $4,540 an ounce. Meanwhile, spot silver saw a significant increase, rising 7.6 percent to surpass $77 an ounce, marking its fifth consecutive session of gains.

Throughout the year, Schiff has consistently advocated for investments in precious metals, particularly during times of economic volatility. Earlier in April 2025, when gold prices surpassed the $3,000 mark, he described the milestone as “significant.” He urged investors to consider both gold and silver as viable hedges against inflation and economic instability. At that time, he highlighted silver’s strong potential for growth, noting it was trading below $34 an ounce.

In a video message earlier in the year, Schiff noted, “While central banks are aggressively accumulating gold, retail investors still have an opportunity to benefit.” He further predicted that gold prices could ascend to $4,000 and beyond, emphasizing the importance of adapting investment strategies in light of current economic conditions.

As global economic dynamics continue to shift, Schiff’s predictions serve as a reminder for investors to remain vigilant and consider the implications of currency fluctuations and the evolving role of precious metals in the financial landscape.