Key Takeaways
- Fears of de-dollarization are growing.
- Peter Schiff has issued a stark warning that the U.S. dollar is getting “crushed.”
- However, some analysts noted that the metals rally may face short-term pullbacks.
Economist Peter Schiff has warned of a weakening U.S. economy as gold and silver prices surged to record highs over the weekend, intensifying debate over whether confidence in the U.S. dollar is beginning to erode.
While most economists maintain that the dollar remains deeply entrenched at the center of global trade, the growing influence of the BRICS bloc and rising demand for precious metals are fueling renewed concerns of de-dollarization.
Schiff Delivers Warning
Longtime Bitcoin critic Peter Schiff said the rally in precious metals reflects underlying weakness in the U.S. economy and the dollar, rather than speculative excess.
“Trump may think the U.S. has the hottest economy in the world, but financial markets prove it’s the coldest,” Schiff wrote on Monday.
“Gold is surging above $5,020, silver is over $104.65, and the U.S. dollar is getting crushed against other fiat currencies, hitting a record low against the Swiss franc,” he added.
Schiff also warned last week that both U.S. dollar–denominated assets and cryptocurrencies could suffer significant losses in the months ahead.
“By the end of the year, holders of U.S. dollar–denominated assets and cryptocurrencies, including Bitcoin, will be substantially poorer than they are today,” Schiff wrote.
“In contrast, holders of non-dollar–denominated assets and precious metals will be significantly richer. Which will you be?”
Is De-Dollarization Incoming?
Some market commentators have framed the rally in precious metals as evidence of a broader loss of confidence in fiat currencies.
An account known as NoLimit wrote on X that the simultaneous surge in gold and silver suggests markets are “pricing in a collapse of trust in the U.S. dollar.”
“When the two oldest forms of money on Earth move like this simultaneously, it’s a clear sign that something has broken,” the post said.
“People aren’t buying metals because they want to — they’re buying because they’re terrified of holding anything else.”
The account also warned that volatility in equity markets could force large funds to liquidate metals holdings to cover losses elsewhere, potentially triggering short-term pullbacks before further gains.
Analysts cautioned, however, that the pace of the rally may be difficult to sustain.
Roukaya Ibrahim, chief strategist at BCA Research, warned investors against chasing prices at current levels.
“In real terms, silver’s deviation from its 200-day moving average is nearing levels that previously preceded price pullbacks,” Ibrahim said.
She added that higher prices are already prompting demand adjustments in industrial sectors, particularly solar manufacturing, where silver is a key input.
BRICS Push De-Dollarization Fears
Concerns about the dollar have intensified as the BRICS bloc — Brazil, Russia, India, China, and South Africa, alongside newer members including Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE — continues efforts to reduce reliance on the U.S. currency.
BRICS nations have explored settling bilateral trade in local currencies and are developing a proposed gold-backed digital settlement unit to facilitate cross-border payments.
Supporters argue the system could streamline trade, reduce exposure to dollar volatility, and lessen dependence on networks such as SWIFT.
Mamadou Kwidjim Toure, founder and chief executive of Ubuntu Tribe, told CCN that de-dollarization is accelerating, even as the dollar remains dominant.
“In 2000, the dollar accounted for roughly 70% of global foreign exchange reserves, but by the third quarter of 2025, its share had fallen to 56.92%, according to IMF data,” Toure said.
He added that central banks worldwide purchased more than 1,100 tons of gold in 2025 alone — the largest annual increase in 70 years.
“De-dollarization may not happen overnight,” Toure said.
“But the trajectory suggests a gradual yet profound realignment in global trade and reserves that many are underestimating.”
Schiff Predicts 2026 Financial Crash
Schiff has also forecast a financial crisis in 2026 that he believes will surpass the 2008 global financial meltdown, though with a different geographic impact.
“The main difference between the 2026 financial crisis and the 2008 financial crisis, other than the fact that this one will be much worse, is that it won’t be global,” Schiff wrote.
“The rest of the world will actually benefit as the burden of supporting the U.S. consumer economy will be lifted.”
According to Schiff, the downturn will be especially painful for Bitcoin investors who bought the asset as protection against inflation.
“It’s going to be very frustrating and unfortunate for Bitcoin HODLers, who actually bought Bitcoin for the same reasons I bought gold and silver, to see all the economic forecasts we had in common come true, but to end up losing more money than people who did nothing to prepare,” he said.
Bitcoin has continued to underperform precious metals during the recent rally.
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Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
