Leading gold proponent Peter Schiff rang a warning bell after the XAU/USD index climbed above the $5,000 range. Gold is soaring in the charts with no force able to stop its upward trajectory. While gold is rising tremendously, the US dollar is falling massively. The DXY index touched a low of 96.9, spreading panic among the investor community about its prospects.

US Dollar Holders Will Soon Be ‘Poor’, Warns Peter Schiff

Economist Peter Schiff explained that the surge in gold prices will wreak havoc on the US dollar-denominated assets. He also added that the advancing nature of the de-dollarization agenda is also casting doom on the greenback.

Apart from the US dollar-denominated assets, Schiff warned that Bitcoin could also fall along with the currency. “By the end of the year, holders of US dollar–denominated assets and cryptocurrencies, including Bitcoin, will be substantially poorer than they are today,” Schiff wrote.

“Trump may think the US has the hottest economy in the world, but financial markets prove it’s the coldest,” he said. The rally of commodities like gold, silver, and copper has dampened the prospects of the US dollar. There is a rising demand for gold from central banks, institutional funds, and retail investors.

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Any investor, at any point, who purchased gold and silver last year made profits. That is not the case for the US dollar as traders who took an entry position are in a loss. The USD, which was once seen as a safe haven, is seeing its authority and dominance questioned.

Commentators have framed the rally in commodities as evidence of the eroding confidence in the US dollar. The fall is not a short-term pullback, as the currency has only been moving south for a year. Taking an entry position in the DXY index is now a risky affair.