Gold just made history, breaking all records and soaring above $2,954 per ounce. But this isn’t just about gold’s shiny appeal; it’s the incredible reality of a world teetering on the brink of financial collapse. Peter Schiff put it bluntly: gold is making its biggest move in years, while the stock market investors remain dead wrong, stuck in a bearish rut.
Gold’s current run isn’t a fluke—it’s a signal, a bell tolling for something deeper. Gold is up a staggering 50% in the last 14 months, and it’s only getting started. According to The Kobeissi Letter, gold’s market cap just hit $20 trillion for the first time in history, pushing the metal into a new realm of significance. The momentum is undeniable, with physical gold buying soaring and inventories spiking by 15 million ounces in just two months.
What’s really wild? Despite gold’s surge, the stock market has stubbornly failed to keep pace. The Gold Miners ETF ($GDX), for example, is still 7% lower than its 2020 peak. Gold is shattering expectations while the stock market acts like it’s stuck in quicksand. That’s not a coincidence—it’s a warning.
Let’s break this down. Gold prices have jumped roughly 24% since late July. In comparison, the U.S. Dollar has only gained about 2%, and the 10-year Treasury yield is up 8%. This doesn’t just go against the usual market behavior where gold and rates move in opposite directions—this is a seismic shift. Gold is charging ahead while the dollar and yields struggle to keep up.
Physical gold buying? Skyrocketing. The three largest COMEX gold vaults have seen a 15 million ounce surge in just two months—a +115% increase. This is even more than the panic buying we saw back in 2020 when COVID sent the world spiraling.
And it’s not just Wall Street that’s catching on. Asia is buying gold at an unprecedented rate. China’s gold reserves have hit a record $73.5 billion, while India’s reserves have reached an all-time high of $70.9 billion. The global gold demand surged 24% in 2024 alone, reaching a record-breaking $382 billion.
So why is everyone flocking to gold? The answer is simple. Long-term macroeconomic fears—namely, the U.S. debt crisis and inflation—are driving this surge. The pandemic-era spending spree has left the U.S. with an exploding national debt of $13 trillion, and the dollar has lost nearly 25% of its value. The American consumer is drowning in debt, with household debt soaring to $18 trillion, mortgages at $12.6 trillion, and auto loans and credit card debt at all-time highs.
Here’s the kicker—delinquency rates are climbing, and they’re nearing levels we saw right before the 2008 crash. Consumers have never been more leveraged, and yet we keep piling on more debt to “fix” the problem. Newsflash: More debt isn’t the solution to inflation—it’s the problem.
But don’t count on the government to fix it. They’ve shown that the answer to any crisis is more spending. And as debt markets blow up, the government will keep cranking up the spending machine. The long-term outlook is ugly, and it’s no wonder why people are turning to gold as their safe haven.
Gold isn’t just a commodity; it’s a shield in a world that’s becoming increasingly unstable. As long as the U.S. continues its reckless spending spree, inflation will persist, and gold will continue to rise. The question isn’t whether gold will rise—it’s how high will it go before the real crash hits?
https://x.com/PeterSchiff/status/1892534141201121697
https://x.com/Barchart/status/1892503554448908337
https://x.com/KobeissiLetter/status/1892596245794783617