Peter Schiff Says Treasury Market Is 'Breaking Down' As Yields Surge, Calls Bond Crash 'Most Bullish' For Gold
ALBILAD GOLD ETF 9405.SA | 0.00 | |
iShares Gold Trust Micro ETF of Benef Interest IAUM | 0.00 | |
abrdn Physical Gold Shares ETF SGOL | 0.00 | |
VanEck Vectors Gold Miners ETF GDX | 0.00 | |
Gold Trust Ishares IAU | 0.00 |
Economist Peter Schiff is sounding the alarm on a brewing bond market crash, warning that U.S. Treasuries are firmly “breaking down” as yields surge. Despite a current market dip in precious metals, Schiff insists this systemic turmoil is the ultimate buy signal for gold and silver.
Yields Surge As Treasuries ‘Break Down’
In a post on X on Friday, the Chief Economist and Global Strategist at Europac.com pointed to alarming figures across the broader bond market.
Schiff highlighted to his followers that the benchmark 10-year Treasury yield has pushed well past the 4.53% mark, trading at a concerning 4.52%. Even more troubling for long-term bondholders is the 30-year yield, which has climbed significantly to reach 5.08%.
This aggressive upward movement in yields inversely signals a sharp drop in underlying bond prices, prompting Schiff to explicitly declare that the Treasury market is deteriorating.
Typically, rising government yields make non-yielding assets less attractive to mainstream investors, which readily explains the immediate market reaction Schiff observed, noting that “Gold & silver are selling off.”
The ‘Bullish’ Case For Precious Metals
However, the vocal financial commentator and founder of SchiffGold believes the market’s current reflex is remarkably short-sighted. Schiff views the deteriorating bond market not as a long-term threat to gold, but rather as a massive macroeconomic catalyst.
“A bond market crash is the most bullish thing that can happen for precious metals,” Schiff stated, framing the ongoing precious metals sell-off as a temporary misunderstanding by Wall Street.
While rising yields traditionally pressure gold, Schiff's underlying thesis implies that a severe failure in the debt market will eventually force dramatic economic interventions, thereby devaluing fiat currency and driving a massive flight to safe-haven assets.
For now, Schiff maintains that the financial sector is entirely mispricing the macroeconomic reality of the situation. He concluded his public warning with a blunt assessment of current market participants: “Traders just haven’t figured that out yet!”
What Are Gold Prices Doing?
Gold Spot US Dollar fell 1.66% to hover around $4,575.33 per ounce. Its last record high stood at $5,595.46 per ounce.
While it has gained 12.15% and 41.18% over the last six months and the year, respectively, it was down 9.28% over the last three months and 4.505 over the last month.
Here’s a list of some gold and gold miner-linked ETFs for investors to consider.
| Gold And Gold Mining ETFs | YTD Performance | 6-Month Performance | One Year Performance |
| SPDR Gold Trust (NYSE:GLD) | 7.80% | 13.63% | 45.73% |
| iShares Gold Trust (NYSE:IAU) | 7.85% | 13.72% | 45.97% |
| SPDR Gold MiniShares Trust (NYSE:GLDM) | 7.21% | 11.73% | 46.17% |
| abrdn Physical Gold Shares ETF (NYSE:SGOL) | 7.08% | 11.64% | 46.06% |
| iShares Gold Trust Micro (NYSE:IAUM) | 7.14% | 11.73% | 46.23% |
| VanEck Gold Miners ETF (NYSE:GDX) | 8.19% | 21.93% | 106.26% |
| VanEck Junior Gold Miners ETF (NYSE:GDXJ) | 10.54% | 28.97% | 117.12% |
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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