Jing Pan

Sat, Jun 14, 2025, 10:05 AM6 min read

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Investors may be feeling uneasy as stocks struggle amid ongoing trade tensions and tariffs. But according to economist Peter Schiff, one asset is standing out amid the uncertainty: gold.

“Today marks a monumental moment in gold history as the spot price closes above $3,000 an ounce. Despite the media's silence, this development is significant,” Schiff wrote on Instagram on March 17.

Despite gold's 40% surge over the past year, Schiff believes the rally is just getting started.

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“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 wrote.

In 2024, central banks added 1,045 tonnes to global reserves, marking the third consecutive year of net purchases exceeding 1,000 tonnes, according to the World Gold Council.

For Schiff, central bank buying isn’t just about portfolio diversification — it’s a warning sign.

Many investors turn to gold as a hedge against inflation, since — unlike fiat currencies — it can't be printed at will by central banks.

Schiff argues that central banks’ growing appetite for gold signals something deeper.

“Investors haven't even woken up to what central banks are doing, but the central bankers are the insiders of the fiat monetary system,” he said. “The insiders in the fiat monetary system have been dumping their dollars to buy gold. They obviously know something, and the public hasn't caught on yet.”

So, what do they know that retail investors don’t?

Schiff believes it’s simple: inflation isn’t going away.

“Investors haven't woken up to the reality of high inflation, as far as the eye can see, they still believe that the Fed is going to be able to bring inflation back down to 2% — there's no chance that's going to happen,” he stated. “Inflation isn't going anywhere near that. In fact, it's already bottomed out and is headed much higher — none of that has really been priced into gold yet.”