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Economist Peter Schiff made his name by predicting the 2008 financial crisis.<\/p>\n
Now, he says he sees something even more fiscally ominous on the horizon \u2014 and this time, he believes it\u2019s coming straight for the U.S.<\/p>\n
\u201cWe are headed for an economic crisis again that will make the 2008 financial crisis look like a Sunday school picnic,\u201d Schiff said in a February interview with Fox Business (1).<\/p>\n
\u201cThe biggest difference between the crisis that we\u2019re about to have and the one we had back then is this one is all in America.\u201d<\/p>\n
Schiff\u2019s comments came before the U.S. declared war on Iran. In an X post on March 25, Schiff analyzed February data from the Bureau of Labor Statistics, citing major hikes in import and export prices in just a single month \u2014 and that\u2019s before the war made oil prices soar (2).<\/p>\n
\u201cUnless the Fed raises rates several hundred basis points now, inflation will skyrocket,\u201d he wrote (3).<\/p>\n
The crisis he predicts is not only due to inflation, however. It\u2019s down to how much debt the U.S. is carrying: a record $39 trillion (4), with a reported $50 billion more to be added as a result of waging war in the Middle East.<\/p>\n
Schiff wrote on X on March 17, \u201cTrump will ask Congress for $50B to fund the Iran war\u2026 he should ask for $50B in other spending cuts or tax hikes to pay for it. The debt is a greater threat than Iran (5).\u201d<\/p>\n
And it turns out Schiff was low-balling. In early April, the White House released 2027\u2019s budget, which included a request for $1.5 trillion in defense spending from Congress \u2014 a 44% increase.<\/p>\n
According to Schiff, the issue is embedded in the structure of the U.S. economy and its monetary system.<\/p>\n
\u201cWe have a dysfunctional, consumer-based credit economy that rests on the foundation of the U.S. dollar\u2019s reserve currency status,\u201d he explained. \u201cAnd the world is now pulling the rug out from under the U.S. The dollar is going to collapse. The dollar is going to be replaced by gold. Central banks are buying gold to back up their currencies.\u201d<\/p>\n
Some recent data points lend support to that view. The U.S. Dollar Index \u2014 which tracks the greenback against a basket of major foreign currencies \u2014 fell to its lowest level in four years (6) in February, and only rebounded slightly since the war began. Economists still predict that the dollar will perform weakly in 2026 (7).<\/p>\n
At the same time, reports show that central banks have more than doubled their gold purchases to over 1,000 tonnes a year since 2022 (8). While gold dipped earlier this year, it remains to be seen if more countries will hedge their bets with continued gold purchases by the end of the year.<\/p>\n
At the start of 2026, gold prices surged, breaking past the $5,400-an-ounce mark in January.<\/p>\n
Schiff, who is also involved with SchiffGold, believes the rally in precious metals is more than just a trade \u2014 he sees it as a warning signal for rampant inflation.<\/p>\n
\u201cInflation is going to be much more pernicious over the next few years than it was when Biden was president, unfortunately. That\u2019s what gold and silver are telling you \u2014 they are a warning,\u201d he said.<\/p>\n
Inflation has steadily eroded the dollar\u2019s purchasing power, regardless of who was in the White House. According to the Federal Reserve Bank of Minneapolis, $100 in 2025 buys what just $12.05 did in 1970 (9).<\/p>\n
Gold has long served as a hedge against inflation.<\/p>\n
Unlike paper currency, the precious metal can\u2019t be printed at will by central banks, nor is it tied to the fortunes of any single country or economy \u2014 qualities that often draw investor interest during periods of uncertainty.<\/p>\n
Schiff declined to put a specific price target on gold. When asked how high he thinks it could go, he said in February, \u201cI don\u2019t have a target price other than much higher, because there\u2019s no floor on the dollar, so there\u2019s no ceiling on gold.\u201d<\/p>\n
Other prominent voices on Wall Street have also highlighted gold\u2019s potential.<\/p>\n
JPMorgan CEO Jamie Dimon recently said that in this environment, referring to high asset prices, gold could \u201ceasily\u201d rise to $10,000 an ounce.<\/p>\n
One way to invest in gold that can also provide significant tax advantages is to open a gold IRA with the help of Priority Gold<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, thereby combining the tax advantages of an IRA with the protective benefits of investing in gold<\/a>. This makes it one option for those looking to help shield their retirement funds against economic uncertainties.<\/p>\n When you make a qualifying purchase with Priority Gold, you can receive up to $10,000 in precious metals<\/a> for free.<\/p>\n Read More: I\u2019m almost 50 years old and don\u2019t have retirement savings. Is it too late?<\/a><\/p>\n During the interview, Schiff was asked about two precious-metals mining stocks he highlighted in September 2024 \u2014 Agnico Eagle Mines (AEM) and Pan American Silver (PAAS) \u2014 which have since climbed roughly 161% and 206%, respectively, as of early April.<\/p>\n Despite those gains, Schiff says he still sees value.<\/p>\n \u201cEven though those stocks are up a lot \u2026 they\u2019re actually cheaper now than they were back then because the earnings of these companies have gone up a lot more than the share price,\u201d he said.<\/p>\n Some investors, Schiff noted, argue that gold and silver prices are already in bubble territory. He disagrees.<\/p>\n \u201cIt\u2019s not a bubble. It\u2019s the pin. The bubble is in the dollar. The bubble is in the U.S. economy,\u201d he said. \u201cAnd when investors start to realize that not only are gold prices and silver prices not going back down, but they\u2019re going to keep going up, these stocks are going to go ballistic.\u201d<\/p>\n Beyond those two names, Schiff also pointed to Franco-Nevada (FNV) as a \u201creal high-quality\u201d gold stock.<\/p>\n He added that this year\u2019s biggest movers may be junior mining companies \u2014 smaller, lesser-known names that didn\u2019t rally as much last year.<\/p>\n If you want to pick individual stocks in mining companies to invest in, you\u2019ll need top-of the-line tools to make smarter trading decisions.<\/p>\n Platforms like Moby<\/a> aim to simplify the process. Their team of former hedge fund analysts does the heavy lifting \u2014 breaking down the market, flagging quality stocks and making the research easy to digest.<\/p>\n In fact, across nearly 400 stock picks over the past four years, Moby\u2019s recommendations<\/a> have beaten the S&P 500 by almost 12% on average. Their research keeps you up-to-the-minute on market shifts and takes the guesswork out of choosing investments.<\/p>\n Plus, their reports are easy to understand for beginners, so you can become a smarter investor in just five minutes<\/a>.<\/p>\n With the right advice comes a need for investing tools that are simple to use, but powerful enough to enable complex trades.<\/p>\n Platforms like Robinhood<\/a> are designed to make investing simpler and more approachable. You can buy and sell individual stocks, fractional shares and options (for qualified traders) \u2014 backed by 24\/7 support. Stocks, ETFs and their options trades are commission-free.<\/p>\n With access to popular ETFs like the Vanguard S&P 500, you can build diversified exposure<\/a> without needing to pick individual stocks.<\/p>\n The platform also offers both a traditional IRA and a Roth IRA, so you can choose the tax strategy that fits your retirement plan.<\/p>\n With its recurring investment feature, you can set up automatic investments<\/a> of your preferred fractional shares, stocks and ETFs on your own schedule.<\/p>\n Over time, this helps make investing a habit and steadily grows your portfolio.<\/p>\n Gold isn\u2019t the only asset investors turn to during inflationary times. Real estate has also proven to be a powerful hedge.<\/p>\n When inflation rises, property values often increase as well, reflecting the higher costs of materials, labor and land. At the same time, rental income tends to go up, providing landlords with a revenue stream that adjusts for inflation.<\/p>\n Over the past ten years, the S&P Cotality Case-Shiller U.S. National Home Price NSA Index has jumped by more than 87%, reflecting strong demand and limited housing supply (10).<\/p>\n Of course, high home prices can make buying a home more challenging, especially with mortgage rates still elevated. And being a landlord isn\u2019t exactly hands-off work \u2014 managing tenants, maintenance and repairs can quickly eat into your time (and returns).<\/p>\n The good news? You don\u2019t need to buy a property outright \u2014 or deal with leaky faucets \u2014 to invest in real estate today.<\/p>\n Mogul is a real estate investment platform offering fractional ownership in blue-chip rental properties<\/a>, which gives investors monthly rental income, real-time appreciation and tax benefits \u2014 without the need for a hefty down payment or 3 a.m. tenant calls.<\/p>\n Founded by former Goldman Sachs real estate investors, the team hand-picks the top 1% of single-family rental homes nationwide<\/a> for you. Simply put, you can invest in institutional quality offerings for a fraction of the usual cost.<\/p>\n Each property undergoes a vetting process, requiring a minimum 12% return even in downside scenarios. Across the board, the platform features an average annual IRR of 18.8%. Their cash-on-cash yields, meanwhile, average between 10 to 12% annually. Offerings often sell out in under three hours<\/a>, with investments typically ranging between $15,000 and $40,000 per property.<\/p>\n Every investment is secured by real assets<\/a>, not dependent on the platform\u2019s viability. Each property is held in a standalone Propco LLC, so investors own the property \u2014 not the platform. Blockchain-based fractionalization adds a layer of safety, ensuring a “permanent, verifiable record of each stake.<\/p>\n Getting started is a quick and easy process. You can sign up for an account and then browse available properties<\/a>. Once you verify your information with their team, you can invest like a mogul in just a few clicks.<\/p>\n Schiff\u2019s warning comes as the U.S. stock market hovers near record highs.<\/p>\n That backdrop has renewed the case for diversification. Nearly 40% of the S&P 500\u2019s weight is concentrated in its ten largest stocks, and the index\u2019s CAPE ratio hasn\u2019t been this high since the dot-com boom (11).<\/p>\n This is where, for many investors, alternative assets come into play.<\/p>\n These can include everything from real estate and precious metals to private equity and collectibles.<\/p>\n Billionaires like Jeff Bezos and Bill Gates continue to invest heavily in stocks, but they also carve out a portion of their portfolios for assets that behave differently from the market.<\/p>\n One standout example: post-war and contemporary art, which outpaced the S&P 500 by 15% from 1995 to 2025 while showing near-zero correlation to traditional equities.<\/p>\n Until recently, this world was off-limits. Now, with Masterworks<\/a>, you can buy fractional shares in multimillion-dollar works by icons like Banksy, Picasso and Basquiat. While art can be illiquid and typically requires a long-term hold, it offers unique portfolio diversification.<\/p>\n Masterworks has sold 27 artworks so far, yielding net annualized returns like 14.6%, 17.6%, and 17.8%.<\/p>\n Moneywise readers can get priority access to diversify with art: Skip the waitlist here<\/a><\/p>\n Note that past performance is not indicative of future returns. Investing involves risk. See important Regulation A disclosures at Masterworks.com\/cd<\/a><\/p>\n Join 250,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/a><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines<\/a>.<\/p>\n Peter Schiff (1<\/a>), (3<\/a>), (5<\/a>); The Street (2<\/a>); Peter G. Peterson Foundation (4<\/a>); The Guardian (6<\/a>); CNBC (7<\/a>), (11<\/a>); World Gold Council (8<\/a>); Federal Reserve Bank of Minneapolis (9<\/a>); S&P Global (10<\/a>)<\/p>\n This article provides information only and should not be construed as advice. It is provided without warranty of any kind.<\/p>\n","protected":false},"excerpt":{"rendered":"Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. 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