Peter Schiff Declares Gold as Money, Sparks Debate Amid Price Surge to $3,500
Gold’s Price Surge Raises Concerns Over the US Dollar, Says Peter Schiff
As gold prices continue their impressive rally, surpassing the $3,500 mark on April 22, Peter Schiff, a long-time gold advocate and outspoken Bitcoin critic, has made bold claims about the precious metal’s role in the global economy. According to Schiff, gold is money, a statement that has reignited a heated debate, especially within the crypto community.
Schiff’s remarks came shortly after gold futures hit an all-time high of $3,500, with spot gold reaching $3,498 on April 22, according to TradingView. As gold prices surge, Schiff has raised alarms about the US dollar’s dominance and its future outlook. In a post on X (formerly Twitter), he stated, “This is the end of the US dollar’s dominance. Life in America is about to change in ways few can imagine.”
Gold’s Record-Breaking Rally and Its Impact on the US Dollar
Gold Up 31% in 2025, US Dollar Drops 9%
Since the beginning of 2025, gold has seen a staggering 31% increase in value, while its one-year price has risen by more than 44%. These gains have coincided with a significant decline in the US dollar, which has dropped 9% year-to-date, as measured by the US Dollar Index (DXY).
This sharp contrast has raised concerns among financial analysts and investors, with Schiff suggesting that gold’s rise signals a shift in global financial dynamics, one that could spell the end of the US dollar’s dominance in global markets. As the global economic landscape evolves, Schiff’s assertion positions gold as a critical alternative to fiat currencies, especially amidst growing inflation and economic uncertainty.
Gold as ‘Money’: A Controversial Claim in the Crypto Community
Crypto Advocates Challenge Schiff’s Definition of Money
While Schiff’s statement that gold is money has gained traction among his followers, it has also sparked significant pushback, particularly from the crypto community. Many commentators have questioned whether gold truly qualifies as “money” in the modern financial system. According to traditional economic theory, money must fulfill four key functions: a store of value, a unit of account, a medium of exchange, and a standard of deferred payment.
Critics, including well-known crypto advocate Mike Alfred, pointed out that gold is rarely used for daily transactions. In response to Schiff’s claims, Alfred humorously tweeted, “I shaved a bit off my gold bar at Starbucks this morning. They accepted it as payment. First time in a while,” underscoring the difficulty of using gold as a practical payment method.
Gold vs. Bitcoin: Competing or Complementary Assets?
Bitcoin’s Growing Role as Digital Gold
As gold continues its rally, the debate between gold and Bitcoin—often referred to as “digital gold”—has intensified. Bitcoin bulls like Cathie Wood, founder of ARK Invest, argue that Bitcoin represents a “much bigger idea” than gold and has the potential to capture market share from the precious metal’s $23 trillion market.
While some see gold and Bitcoin as competing assets, others believe the two should be viewed as complementary rather than adversaries. Bitcoin, according to its proponents, offers advantages that gold cannot, particularly in its ability to serve as a payment method in the digital age. With its instant transactions and borderless nature, Bitcoin is increasingly seen as a viable alternative to traditional forms of money, including gold.
Looking Ahead: The Future of Gold and Bitcoin in Global Finance
Is Gold’s Surge a Sign of Economic Instability?
Schiff’s endorsement of gold as money, paired with his warnings about the decline of the US dollar, underscores the growing concerns over the global financial system. As gold continues to hit new highs and the US dollar struggles, the debate over what constitutes true “money” in the digital era will only intensify.
For now, both gold and Bitcoin remain key players in the evolving landscape of global finance. While gold advocates like Schiff remain steadfast in their belief in its monetary value, the rise of Bitcoin suggests that digital currencies may soon challenge the traditional financial system in unprecedented ways.
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