The precious metals market is showing a sharp reversal: silver has reached record levels, confirming the increased investor interest in hard assets amid changes in US monetary policy. Peter Schiff, an economist and well-known critic of fiat currencies, called what is happening the beginning of a strong bullish movement, directly related to inflation risks and the actions of the Federal Reserve System.
Commenting on the situation on social media, Schiff noted that the growth of silver is accompanied by a strengthening of the position of gold.
"Silver is at an all—time high, gold has surged by more than $70 and is less than $30 away from a new all-time high," he said.
According to the economist, the key factor was the Fed's recent decision to cut its benchmark interest rate by 25 basis points to a range of 3.5—3.75 percent and the actual return to quantitative easing policy. This, in his opinion, was a strategic mistake of the regulator.
"Yields on long-term treasury bonds are rising. Ten—year-old securities bring in about 4.19 percent, and thirty-year-old securities bring in 4.85 percent. This confirms that the Fed's latest rate cut and the rejection of quantitative tightening were policy mistakes," Schiff stressed.
The rise in US government bond yields, despite the easing of the Fed's policy, signals that investors are demanding a higher premium for inflationary risks. Against this background, capital is increasingly flowing into assets that are traditionally viewed as a means of preserving value.
The economist directly linked the dynamics of silver to this process.
"Now that QE has returned, gold and silver have entered the race," he said, adding that the market has actually begun to reassess confidence in the dollar.
At the same time, Schiff drew attention to the discrepancy in the behavior of alternative protective assets. According to him, the return of quantitative easing has led to an outflow of capital from the dollar into gold and silver, but not into digital assets.
"The exodus was from the dollar to gold and silver. But not in bitcoin, which sold even more strongly than the dollar," he said.
Silver, unlike gold, is additionally supported by industrial demand — the metal is actively used in electronics, energy and the manufacture of equipment for renewable energy sources. Limited supply and rising production costs reinforce the scarcity effect.
To sum up, Schiff formulated his position as harshly as possible.:
"The silver train can't be stopped."
According to analysts, the current dynamics indicate not only speculative growth, but also a structural shift in investor preferences, which are returning to physical assets against the background of inflation, rising government debt and unstable monetary policy.
