Renowned economist Peter Schiff has sounded alarm bells, predicting an impending “historic economic collapse.” Schiff’s outlook for the US dollar is equally bleak, as he recently suggested that the world’s primary reserve currency may be headed toward a loss of its hegemony and could be replaced by gold.
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“King dollar’s reign is coming to an end. Gold will take the throne as the primary central bank reserve asset. That means the U.S. dollar will crash against other fiat currencies, and America’s free ride on the global gravy train will end. Prepare for a historic economic collapse,” Schiff wrote on X on Friday.
According to Schiff, recent developments in the global economy, such as surging gold prices, central banks selling US Treasuries, and a weakening greenback, signal that King Dollar’s dominance may soon come to an end.
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{{/usCountry}}“America’s free ride on the global gravy train will end soon,” the veteran economist and chief strategist at Euro Pacific Asset Management wrote on X.
His warning comes at a time when precious metal rates are hitting a record high. On Friday, gold, silver and platinum jumped to all-time highs to extend a historic end-of-year rally for precious metals, Bloomberg reported. The spike in the rate is pushed by escalating geopolitical tensions, weakening US dollar and thin market liquidity.
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Spot gold rose as much as 1.6% to a peak above $4,540 an ounce on Friday. Spot silver for immediate delivery advanced for a fifth session, climbing as much as 7.6% to cross $77 an ounce, as per the report.
Schiff in the past has also advocated for investment in gold amid market uncertainty. Back in April 2025, when gold prices hit USD 3,000, Schiff had termed the development ‘significant’ as he encouraged people to invest in gold. “If $3,000 gold feels out of reach, consider silver, currently below $34 an ounce and primed for gains,” Schiff had said then.
“While central banks stockpile gold, retail investors have a unique opportunity to capitalize. With gold expected to rise to $4,000 and beyond, now is the perfect time to invest,” he said then in a video message.