[Editorial] "Peter Schiff is right"... An ominous warning from gold

No one believes the cry of “Wolf!” The author usually pays little attention to Peter Schiff’s words; they go in one ear and out the other. He constantly criticizes Bitcoin as a scam, nitpicks technical stocks with excellent performance, and always pours out pessimistic tones. The market often regards him as a “broken clock.” But some things must be acknowledged. This time, Schiff is right. The current market situation is developing according to his predictions.

Gold and silver prices are soaring. This cannot be simply attributed to speculative hype. It is a terrifying warning to the core of our economic system and a silent scream from the market.

Let’s think rationally. Investors around the world are selling what are considered the safest U.S. Treasuries like throwing broken shoes. Abandoning interest-paying bonds and fleeing into the interest-free “non-yielding assets” like gold, this bizarre phenomenon is happening. It is a paradox that cannot be explained by capitalist logic. It is a frightening signal that investors are choosing asset preservation over yield.

Schiff’s diagnosis is very clear. The rise in gold prices is not the problem. The essence is that gold is rising “at a time of explosive growth in U.S. national debt.” The U.S. government is printing astronomical amounts of bonds to pay off debt, but the market is no longer able to absorb them. No, more accurately, it has lost the willingness to do so. This means market participants are declaring a “trust withdrawal” from the dollar and Treasuries, the core system.

The market’s perspective is sharp. Cold calculations have already established: “To pay off the snowballing debt, the currency will ultimately depreciate.” The “liquidity feast” we enjoyed over the past decade is now sending bills.

So, what should we do? The answer is very clear: we must abandon inertia to survive.

First, we need to redefine “safe assets.” The equation “U.S. Treasuries = risk-free” has been broken. The surge in gold and silver proves that funds are flowing massively into “hard assets with no issuer risk.” Relying solely on paper-based investment portfolios will inevitably lead to losses.

Second, focus on the “foot” of the capital rather than the “mouth” of experts. Now is not the time to be swayed by noise about whether Bitcoin is dead or alive. Huge capital has stopped chasing yields and has retreated into the “value preservation” bunker. Acting against this massive capital flow (Money Move) is reckless.

Third, be prepared for the harsh process of the big washout. The era of borrowing to invest with the expectation of rising prices is over. Lacking substantive thematic stocks will fall like autumn leaves; only assets with verified scarcity and credibility can survive.

Precious metals are usually silent, but in times of crisis, they scream to reveal the truth. At this moment, that scream sounds like an alarm. If we ignore the messenger out of dislike and dismiss the message altogether, we will be helpless in the face of the impending tidal wave. Now is the time to brace ourselves.