Peter Schiff: Gold Hits $3,000, Bitcoin in Trouble

In Sunday’s podcast, Peter dives into the historic developments in the precious metals market last week—including gold surpassing an unprecedented $3,000 per ounce. He also examines the implications of recent actions by global central banks, critiques the crypto investment mindset, and argues that the unfolding NASDAQ bear market signals bad news for Bitcoin.

Peter opens with the historic milestone in precious metals. After briefly touching $3,000, gold still ended the week on its highest-ever closing price, but the white metal performed even better:

That’s a big move. We’re not even finished with the first quarter. Now silver actually did better than gold on the week. Silver was up about 4%, traded above $34, although like gold, it didn’t hold 34, so it pulled back a little bit, just like gold. Gold closed at around 2,985. That was the highest weekly close ever. 

Shifting attention to the crypto craze, Peter is skeptical of advice that suggests following young investors into cryptocurrencies. He argues that experience and wisdom, not youthful exuberance, should guide investment decisions:

And you know what? I hear a lot of people say, oh, the young people, they’re buying crypto, so you should do what the young people are doing because they represent the future. They don’t represent the future in that respect. I mean, yes, the young people are the future, but when they’re older, they’re going to be smarter and they’re going to be more experienced and they’re going to have more wisdom. The idea that we should follow the investment advice of kids is farcical. I’d rather follow the lead of the central bankers.

Peter highlights the significance of central banks increasingly turning toward gold, putting their invaluable “insider information” into action. Their move away from fiat currency sends a strong signal about the future stability of the dollar:

What’s going on with central bankers buying gold? That’s really like inside information on the fiat monetary system because they’re at the heart of it. They’re the insiders. The central bankers are the insiders of the fiat monetary system. And buying gold is like selling stock because they’re selling dollars. So if foreign central banks don’t want dollars, don’t want treasuries, are willing to give up the 4% yield to buy gold that has no yield, that’s a very strong indication that you should be doing the same thing.

Turning to Bitcoin, Peter connects the coming downturn in the NASDAQ to even harsher losses in crypto, warning that Bitcoin investors like Michael Saylor might soon face heavy losses:

If the NASDAQ goes down 20%, Bitcoin is going way down. Bitcoin is going to go down double. Bitcoin is going to be a lot below maybe 65,000 at a minimum, which means it’ll be less than Michael Saylor’s average cost for all the Bitcoin he’s leveraged up to buy. If the NASDAQ is in a bear market, if you look at the last three NASDAQ bear markets, the big one was in 2001 following the tech bubble. NASDAQ almost dropped 80%.

Peter elaborates further, suggesting that historical patterns point to a major decline in Bitcoin prices during NASDAQ bear markets. He argues the “digital gold” thesis is likely to crumble as investors flock to actual physical gold for security:

The average of those three is actually 55%. If this is going to be an average bear market and it goes down 55%, where the hell is Bitcoin going to go? It’s going to get decimated. It’s going to get obliterated, and not just the price but the whole narrative, because gold is going to go up. If we’re in a bear market in the NASDAQ, gold is going way up in that bear market.

Finally, Peter sheds some light on the potential political and economic consequences of tariff policies, which may cloud the waters, giving central banks and monetary policymakers an easy scapegoat for systemic inflation:

So what is this telling you? Now maybe they think it’s all about the tariffs. I don’t know. But these tariffs are going to really be a noose around Trump’s neck because all the bad stuff is going to get blamed on these tariffs, right, the inflation. It’s going to let the Fed off the hooks. Oh, look at all the inflation. They’re going to blame it on the tariffs.

For more analysis on gold’s record-breaking day last week, check out the Friday Gold Wrap!