Prominent American economist and investment strategist Peter Schiff has warned that the rising prices of gold and silver are signaling a much larger financial crisis approaching the United States.
According to Schiff, the country is heading toward a potential U.S. dollar crisis and a sovereign debt crisis, which could unfold either later this year or sometime next year, News.Az reports.
“Gold and silver are warning us about a much bigger crisis that is coming. We are headed toward a U.S. dollar crisis and a sovereign debt crisis,” Schiff said.
He pointed to the weakening of the U.S. dollar against most major global currencies, noting that, with the exception of the Chinese yuan, the dollar is now weaker across the board and trading near a four-year low.
Schiff argued that this trend reflects a growing loss of confidence in both the U.S. economy and Washington’s ability to manage its public finances.
The economist said the situation deteriorated further after the passage of what U.S. President Donald Trump has called the “big, beautiful bill.” Before Trump’s election, Schiff noted, there was still hope that the United States might take meaningful steps toward controlling spending and reducing government outlays.
He added that there is little political appetite — even within the Republican Party — for serious spending cuts, leading to rapidly expanding budget deficits.
Schiff also criticized the administration’s tariff policy, emphasizing that tariffs are ultimately paid by American consumers because they raise the prices of imported goods. As a result, foreign companies sell less into the U.S. market, trade volumes decline, and economic activity weakens.
In addition, Schiff said that Trump’s public rhetoric about using America’s military power, including floating ideas such as invading Greenland, sends a troubling signal to the international community and further undermines confidence in the dollar.
According to Schiff, foreign investors increasingly view the United States as being on an unsustainable economic path, characterized by runaway deficits, mounting debt, and a political system lacking a credible plan for stabilization.
“That is why gold and silver are rising. They are not going up because people suddenly like shiny metals. They are going up because investors are preparing for a loss of confidence in paper money, especially the U.S. dollar,” he said.
Schiff warned that when a dollar crisis eventually hits, it will not be a mild adjustment but a major repricing of U.S. assets, accompanied by a surge in inflation and a sharp decline in purchasing power.