Peter Schiff, a longtime economist and financial commentator, isn’t convinced by President Donald Trump’s claims about the strength of the U.S. economy.
While Trump continues to tout what he calls the “hottest economy in the world,” Schiff says the markets are painting a very different picture.
This week, gold prices surged past $5,000 for the first time, with spot gold reaching $5,093.19 an ounce, according to ICE data.
The jump was driven by several factors: fears of a potential U.S. government shutdown, renewed geopolitical tensions, and widespread weakness in the U.S. dollar.
Silver also rallied, climbing to $109.45 an ounce, while mining stocks soared in Asian markets.
Companies like Zijin Mining Group rose sharply in Hong Kong and China, and Korea Zinc jumped over 14% in South Korea.
According to The Wall Street Journal, the rally in precious metals was driven by shutdown fears, central bank buying, and ongoing geopolitical instability
The rally shows no signs of slowing down.
In a note, Sucden Financial said, “The momentum in precious metals appears relentless, and shows no signs of stopping.”
Peter Schiff posted on X yesterday:
“Trump may think the U.S. has the hottest economy in the world, but financial markets prove it’s the coldest. Gold is surging above $5,020, silver is over $104.65, and the U.S. dollar is getting crushed against other fiat currencies, hitting a record low against the Swiss franc.”
Dollar Weakness, Fed Concerns, and Political Risk
The U.S. dollar index fell 0.5% as investors fled to safe-haven assets, driven by political uncertainty.
Senate Democrats threatened to block a funding bill over homeland security provisions, raising the risk of a partial government shutdown beginning Jan. 31.
This would be the second shutdown in just a few months.
Meanwhile, President Trump raised tensions by threatening a 100% tariff on Canadian imports if Canada makes a deal with China.
“If Canada makes a deal with China, it will immediately be hit with a 100% Tariff against all Canadian goods and products coming into the U.S.A.,” he posted on Truth Social.
Other flashpoints include Trump’s controversial move to seize control of Greenland, ongoing conflicts in Ukraine and the Middle East, and the U.S. seizure of Venezuelan leader Nicolás Maduro.
The atmosphere has become so uncertain that analysts at Maybank wrote, “We continue to keep an eye on geopolitical hotspots—Trump’s desire to control and establish his rights on Greenland’s minerals, attack Iran, and plans for Venezuela as it occupies the country.”
The Federal Reserve is also under pressure. Trump has continued his criticism of Fed Chair Jerome Powell, whose term is nearing its end.
Concerns about Fed independence remain high, especially with inflation still lingering and growth slowing.
Energy Shock Could Be Next
On Friday, Schiff posted another warning:
“Get ready for an energy shock as oil and gas prices surge. This week’s huge spike in natural gas, today’s jump in crude, and across-the-board dollar weakness suggest much higher prices are coming. All of this will push already rising CPI and Treasury yields to much higher levels.”
With inflation already on the rise and Treasury yields trending upward, higher energy prices could make things worse.
The combination of geopolitical risks, domestic uncertainty, and currency depreciation is feeding into concerns about another inflation spike.
Goldman Sachs Boosts Forecast
Analysts at Goldman Sachs are taking note. The bank recently raised its year-end gold price forecast to $5,400, up from $4,900, citing continued central bank purchases and increased interest from private investors looking to hedge against policy and market risk.
“Private sector investors may diversify further on lingering global policy uncertainty,” the firm said.
So far in 2026, spot gold is up about 17%, and silver has surged by roughly 51%.
In short, while Trump may still be selling the idea of a booming economy, Schiff argues the reality is different.
Soaring gold and silver prices, a falling dollar, spiking energy prices, an
IMAGE CREDIT: “Peter Schiff” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.