The debate about the future of money has reignited with insights from prominent economist Peter Schiff. He discusses the preference of central banks for gold in light of global economic shifts.
Why Central Banks Are Choosing Gold?
In a recent post on X, Schiff highlighted that central banks worldwide are increasing their gold reserves amid global economic uncertainty and fears of dollar devaluation. According to Reuters, central banks are now buying more than 1,000 metric tons of gold annually, double the average of the previous decade.
Trump's Policies and the Rise in Gold Demand
Schiff links the increasing demand for gold to the current U.S. administration. He argues that with aggressive tariff policies and the weakening dollar, countries are looking to shield their economies, similar to Russia’s approach of hoarding gold to mitigate Western sanctions.
Bitcoin's Volatility vs. Gold's Stability
Schiff pointed out the unpredictability of Bitcoin, suggesting that U.S. investors may face disappointment as market swings continue. At the time of writing, gold was trading at $3,357.4 per ounce, while Bitcoin was priced at $108,148, and Schiff maintains that Bitcoin lacks the long-term security that central banks seek.
From Peter Schiff's perspective, gold remains a reliable asset in times of economic instability, while cryptocurrencies like Bitcoin carry substantial risks.
