Gold must put an end to the hegemony of the US dollar and become the central bank’s most important reserve asset: Peter Schiff

Gold will replace the US dollar as a central bank reserve, ending its hegemony and leading to a dollar crash against fiat currencies, Peter Schiff, chief economist and global strategist at Euro Pacific Asset Management, warned, urging investors to prepare for a “historic collapse”.“The reign of the King Dollar is coming to an end. Gold will take the throne as the central bank’s main reserve. That means the US 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 said in a tweet.

Schiff is also the chairman of SchiffGold.com, a full-service physical precious metals dealer.Schiff, a big believer in the yellow metal, also said investors who avoided buying gold expecting prices to fall now accept that gold’s rally will continue.

The comments were made after gold crossed the $4,500 mark for the first time ever. The international spot price is currently hovering around $4,537.90. On Friday, prices rose $35.10 an ounce, or 0.78%.

Gold has achieved its best ever return this year.

Domestic gold prices have risen over 80%, driven by safe haven demand, central bank buying and rupee weakness. A report from the World Gold Council (WGC) called the yellow metal’s 2025 rally “remarkable,” with more than 50 all-time highs during the year as of Dec. 4.

Also read: Gold crosses $4,500 for the first time in international markets. How soon in 2026 can $5,000 be reached?

On the outlook for 2026, the WGC said the future will be determined by continued geoeconomic uncertainty. “Gold prices broadly reflect consensus macroeconomic expectations and could remain within a range if current conditions persist. But based on this year’s signals, 2026 is likely to continue to surprise. If economic growth slows and interest rates decline further, gold could post moderate gains,” the report said.

“In a more severe downturn, marked by rising global risks, gold could perform strongly. Conversely, a successful outcome of the Trump administration’s policies would accelerate economic growth and reduce geopolitical risk, leading to higher interest rates and a stronger US dollar, pushing gold lower,” the note said.

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