The gold price is breaking record after record. Investors worldwide are looking for support in the precious metal, which traditionally serves as a safe haven in uncertain times. However, some economists see more than just a flight to certainty in the rising price. Peter Schiff is even sounding the alarm bells for an impending crisis.
Gold is rising, but Schiff sees parallels with 2007
Well-known trader Peter Schiff makes a striking comparison in a recent X post. According to him, the explosive rise in the gold price in 2025 is reminiscent of the developments in the subprime mortgage market in 2007, which ultimately led to the crisis in 2008.
“What is happening now with gold is similar to what happened then with subprime. I had been warning about it for years at the time,” Schiff writes on X. “The market didn’t see the signals, and a year later we were in a global financial crisis.”
Schiff expects that the rising gold price is now another signal of impending doom. According to him, the US economy is on the brink of a crisis that could surpass the crash of 2008. He specifically warns of a possible collapse of the US dollar and a debt crisis in 2026.
What happened in 2008, and why is it relevant?
The 2008 financial crisis began with the collapse of the US housing market. Banks had provided mortgages en masse to people with low creditworthiness. When those loans failed on a large scale, house prices collapsed.
The result: banks suffered billions in losses, institutions such as Lehman Brothers went bankrupt and global confidence in the financial system disappeared. Stock markets plummeted and millions of people lost their jobs. Governments had to intervene with rescue packages of unprecedented scale.
This crisis led to years of economic contraction and deep distrust in traditional financial institutions. In this context, Bitcoin (BTC) was launched in 2009, as an alternative system beyond the reach of central banks.
Gold price breaks all records
Schiff’s concerns come at a time when gold prices are reaching historically high levels. Since January, the price of an ounce of gold (about 31 grams) has risen by 54 percent. Last Wednesday, a new all-time high of $4,058 per ounce was reached.
Factors such as persistent inflation, Trump’s trade policy and concerns about the US budget deficit are contributing to the flight to the precious metal.
Source: https://newsbit.nl/peter-schiff-ziet-onheil-in-goudstijging-waarschuwt-voor-financiele-crisis/
