Peter Schiff Says Buy Gold Near $4000 As Prices Sink From January High, Warns Of Currency Crisis Worse Than 2008

Rising interest rates are a major headwind for gold, as higher yields make the non-interest-bearing metal less attractive, Schiff said.

• Schiff urged investors to buy gold as the metal’s price hovered around nearly $4,000 per ounce on Friday, the lowest since late July.
• The economist also warned that rising producer prices could further fuel consumer inflation, pointing to September's 1.3% monthly increase in the Producer Price Index.
• This comes as markets priced in a 68.9% chance of another 25 bps hike in December, according to CME Fed Watch data.

Gold bull Peter Schiff has urged investors to buy gold and silver, given that metals’ slide alongside the U.S. stock market offers a better buying opportunity as inflation picks up again. Schiff warned that current economic factors were “setting up for a crisis” which could be worse than 2008.

“This is an excellent time to buy, as what's bearish for stocks is actually bullish for gold,” Schiff, CEO of Euro Pacific Capital, said in a Friday post on X.

Adding to it, he said silver was also "a great buy below $54."

Gold traded slightly over $4,000 an ounce on Friday, staging a recovery after dipping briefly to around $3,994, its lowest since late July. It subsequently closed at $3,996, down about 1% for the day.

The yellow metal is down about 29% from its record high of $5,608 in January and has lost nearly 7% in the past month. Silver was trading around $61 at the beginning of October.

Warns US Is Heading Toward A Crisis Worse Than 2008

In The Peter Schiff Show Podcast, he cited September wholesale inflation as a red flag for consumers. The Producer Price Index for Final Demand increased 1.3% in September, the largest monthly gain in more than four years, and was 6.3% higher than a year earlier, the Bureau of Labor Statistics reported. Much of the climb was driven by energy. The Final Demand Energy Index rose 10.8%.

“What are the producers going to do with these higher prices? They’re going to pass them on,” Schiff added. 

According to Schiff, economic growth in the first two years of President Donald Trump's second term was behind President Joe Biden's last two. Commerce Department data showed the economy grew 2.1% in 2025 after 2.8% in 2024 and 2.9% in 2023. 

Schiff also said growth slowed to an annualized 1.5% in the second quarter of 2026. The cost of borrowing is still high, he said. According to Freddie Mac’s survey, the average rate on a 30-year fixed mortgage stood at 7.32%, up from 6.19% a year ago. This, he believes, is the reason for the U.S. “setting ourselves up for a crisis” worse than 2008.

“So we are setting ourselves up for a crisis, a financial crisis, a currency crisis, a debt crisis that is much worse than what we had in 2008 and for inflation that’s much higher than we had in 2021,” Schiff said.

Gold’s Biggest Headwind As Markets Price In Another Fed Hike

According to Schiff, this year, rising rates have been gold’s biggest obstacle. Gold doesn’t pay interest, so higher yields make it more costly to hold. The Federal Reserve on Sept. 16 raised its benchmark rate to 3.75%-4%, its first hike since 2023. 

Futures markets priced in a 68.9% chance of another 25 bps hike in December as of Saturday, according to CME Group’s FedWatch tool, while the odds of a 50 bps hike stood at 7.3%. The Federal Open Market Committee’s (FOMC) next policy meeting is slated for Oct. 27-28.

Why Are Oil Prices Up?

Geopolitical tensions have also put pressure on crude oil prices, which climbed to a six-month high this week following Houthi strikes on Saudi oil infrastructure and reports that the White House is preparing for renewed airstrikes on Iran.

Those gains have added to inflation and rate-hike expectations and have weighed on gold so far rather than lift it, according to Schiff.

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