Economist Warns of Economic Crisis Amid Rising Gold Prices
As gold prices continue to climb, economist Peter Schiff expresses concern that this trend should be viewed as more than just a hedge. He highlights it as a signal indicating accelerated inflation, diminishing global confidence in the dollar, and the possibility of a significant economic downturn ahead.
“Gold and silver are hinting at a larger crisis that could unfold later this year or next,” Schiff remarked during an appearance on “The Claman Countdown.” He emphasized, “We’re approaching a U.S. dollar crisis and a sovereign debt crisis.”
He further mentioned that central banks are increasingly purchasing gold to strengthen their currencies while they reduce their dollar and government bond holdings. “What we are heading towards is going to make the 2008 financial crisis seem like a Sunday school picnic,” he added.
Carrie Sheffield, a senior policy analyst at the Independent Women’s Forum, responded to Schiff’s claims, suggesting that some commentators are quick to make alarmist predictions that don’t necessarily align with current realities.
She explained that gold prices are also being influenced by the federal government’s policies, which have led the dollar to hit historic lows.
Sheffield referenced data from the Bureau of Labor Statistics, illustrating a period of strong growth and stable prices in 2025. She pointed out that inflation rates were considerably lower during former President Trump’s administration compared to those under President Biden. “During Trump’s second term, inflation stood at an average of 2.7%, relative to 5.0% under Biden and just 1.9% during the first term of Trump,” she noted. “Thanks to our economic and energy policies, America achieved a significant 4.4% GDP growth in the third quarter of 2025.”
Host Liz Claman acknowledged the numbers, mentioning that consumer sentiment tends to be volatile, but people’s incomes appear stable, with signs of increased productivity.
However, Schiff challenged the accuracy of these statistics, labeling them as skewed and likely subject to correction, arguing that inflation will prove more damaging in the coming years than during Biden’s presidency. “Gold and silver are warning us,” he said.
Schiff drew parallels to the subprime mortgage crisis in 2007, recalling how he had anticipated a larger crisis at that time, despite assurances from then-Federal Reserve Chairman Ben Bernanke that subprime risks were contained. “We rely on a world that provides goods we don’t produce and lends us money we don’t save,” he explained. “Trump is changing that dynamic. Our economy’s reliance on the dollar’s status as a reserve currency is shifting, and the world is beginning to withdraw support, threatening its collapse.”
Schiff asserted that there’s no limit to how high gold prices could rise, stating, “There’s no floor for the dollar.”
He differentiated the current crisis from past financial issues, stressing its entirely domestic nature. “This is an American financial crisis, and the rest of the world could actually benefit from it,” he stated.
Sheffield countered that, despite ongoing global challenges tied to places like Venezuela, Russia, and Iran, the U.S. is positioned strongly and growing under Trump’s administration.
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