💥💫😱 Peter Schiff Blames the Fed as Gold Crashes 25%: Why Market’s Aren’t Buying It

In March 2026, gold experienced a historic crash, plunging 25% from its all-time high of $5,600 to below $4,200 per ounce. This selloff wiped out over $10 trillion in value nearly 7.6 times the market capitalization of Bitcoin. Silver suffered even more, crashing nearly 50% to hit a three-month low around $61.

Economist Peter Schiff characterized the selloff as "irrational," arguing that investors are fundamentally misreading the Federal Reserve’s impact. Schiff noted that while traders are selling gold on fears that high inflation will prevent the Fed from cutting rates, real interest rates are actually falling a condition that is historically bullish for gold. He criticized the market's resilience in stocks, suggesting that equities are far more dependent on rate cuts than precious metals.

Schiff also raised alarms over U.S. fiscal policy, highlighting Treasury Secretary Scott Bessent’s confirmation that war spending would be financed through debt rather than taxes. Schiff warned that this path leads to "higher inflation and more debt," arguing that the primary threat to the U.S. economy comes from Washington's fiscal irresponsibility. With 10-year Treasury yields hitting 4.4%, Schiff predicts a financial crisis potentially worse than 2008.

Analysts are divided on the crash's cause. While some cite forced liquidations and a 10% hike in CME margin requirements, others point to a strong U.S. Dollar Index (DXY) hitting 100.50. Despite active geopolitical tensions in the Middle East, gold failed to act as a safe haven, leading experts to question whether this is a temporary "positioning reset" or a structural shift in how markets value inflation-hedge assets.
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