Schiff Urges Gold Buying Near $4,000 and Warns of Crisis Worse Than 2008

what happened

According to Stocktwits, gold bull Peter Schiff, CEO of Euro Pacific Capital, has urged investors to buy gold and silver. In a Friday post on X, he argued that the slide in metals alongside U.S. stocks creates a better entry point, and called silver a great buy below $54 an ounce.

Gold traded slightly above $4,000 an ounce after briefly dipping to around $3,994, its lowest since late July. It closed at $3,996, down about 1% on the day, and sits roughly 29% below its record $5,608 from January. Schiff also pointed to September's Producer Price Index, which rose 1.3%, the largest monthly gain in more than four years, and was up 6.3% from a year earlier, with energy the main driver.

The Federal Reserve raised its benchmark rate to 3.75%-4% on Sept. 16. Futures markets price a 68.9% chance of another 25 basis point hike in December, according to CME Group's FedWatch tool. The next FOMC meeting is set for Oct. 27-28.

why it matters

The key signal for markets is the link between rates and inflation: higher yields raise the cost of holding gold, which pays no interest. Oil's climb after Houthi strikes on Saudi infrastructure and reports of possible renewed airstrikes on Iran also feeds expectations of tighter policy. Schiff's view is his personal opinion and not investment advice.

market impact

Gold and silver: higher rates and inflation expectations weigh on metals rather than support them.

tags

instruments