Peter Schiff warned that the U.S. dollar could collapse by 2026 and that gold may replace it as the world’s primary reserve asset, citing structural weaknesses in the U.S. economy and shifting central-bank reserves. He linked the risk to rising gold purchases by foreign central banks and declining confidence in the dollar’s reserve role.
Schiff argued the U.S. has a fragile, consumer-driven credit system that depends on the dollar’s reserve status, and he warned, “We are headed for an economic crisis again that will make the 2008 financial crisis look like a Sunday school picnic.” He added, “The dollar is going to collapse. The dollar is going to be replaced by gold.”
Central banks have bought more than 1,000 tonnes of gold annually since 2022 and now hold about 36,000 metric tons valued near $4.5 trillion, compared with roughly $3.5 trillion in U.S. Treasuries (Ed. note: this marks the first time in nearly 30 years central-bank gold holdings have exceeded Treasuries). Since April 2025, foreign central banks reduced U.S. Treasury exposure by about $183 billion and shifted funds into gold.
Gold has climbed past $5,000 per ounce, and JPMorgan CEO Jamie Dimon said, “It could easily go to $5,000 or $10,000 in environments like this.” Ken Griffin of Citadel said, “I now view gold as a safe harbor asset in a way that the dollar used to be viewed.”
Schiff declined to name price targets, saying “I don’t have a target price other than much higher, because there’s no floor on the dollar, so there’s no ceiling on gold.”
