What to Know
- Gold recently witnessed a massive rally, surging past $3,800.
- Tokenized gold products are underway, which led to fiery comments by Peter Schiff regarding the future of Bitcoin.
- Schiff stated that tokenized gold could eventually drive Bitcoin “out of business.”
The scalding gold run has sparked a renewed debate on the topic of precious metals versus digital currency. The long-time gold proponent Peter Schiff stated that tokenized gold could eventually push Bitcoin (BTC) out of business.”
Peter Schiff Believes Tokenized Gold Could Put Bitcoin Out of Business
In social media platform X, Schiff addressed a user’s post who inquired if the recent surge of gold could be in part related to expectations of tokenized versions of the metal. “No, but tokenized gold is coming, due to gold’s rise. It’s the best use case for crypto. It will put Bitcoin out of business,” Schiff replied.
It was an addition to a separate post where Schiff took aim at the economic matters of U.S. President Donald Trump. He claimed that inflation during the Trump administration would be more disastrous than former President Joe Biden’s tenure.
No, but tokenized gold is coming, due to gold’s rise. It’s the best use case for crypto. It will put Bitcoin out of business.
— Peter Schiff (@PeterSchiff) September 29, 2025
He declared, “Trump promised voters he’d bring prices down on day one and make America affordable again. Instead, prices kept rising. The biggest problem is that inflation during his term will end up being much worse than it was under Biden, making America less affordable than ever!”
Gold and Silver on a Tear
The comments made by Schiff came along with new milestones of precious metals. “Gold just traded above $3,800. Silver is above $47,” he noted in one of his recent posts. “Gold isn’t shattering record after record because the Fed’s decision to lower interest rates was correct, or because Trump’s economic policies are a success. It’s indicative of the abject failure of fiscal and monetary policy.”
He pointed out one more milestone of bullion earlier in the week. “Another Sunday night, another record high in the price of gold, now above $3,786. Silver is above $46.50, close to setting a new 14-year high and closing in on breaking the long-term double top of $50. Once silver clears $50, I expect an explosive move up in both silver and gold.”
The figures confirm his observation. The gold has already gained 28% in 2024, the best performance of the year since 2010, which saw the metal making nearly 30 deliveries. Silver, in the meantime, has risen by 26%, its best performance of the year since 2020, which saw it rise by almost 48%.
There are several drivers of the sudden increase in the prices of precious metals. Gold buying has been a heavy tailwind, with central banks buying gold all through the year. Increased geopolitical tensions have also contributed to this, with investors seeking the traditional safe-haven metal in times of uncertainty.
The central bank of China, which held its purchases in May, made fresh purchases in November. This increased demand once again strengthened the positive trend in world prices.
Crypto Stays Behind Gold
In line with Schiff’s remarks, Bitcoin has fallen short of gold’s rally since the beginning of the year, with the former boasting modest year-to-date gains of 20%. The second-largest cryptocurrency, Ethereum, also gained around 23.75% this year, losing to gold and silver.
Earlier, crypto markets soared, following the resounding victory of Donald Trump in the U.S presidential elections. Ethereum alone surged 41% since November 5. The open support that Trump gave to cryptocurrencies has contributed to the inflows in Bitcoin exchange-traded funds and boosted the overall digital asset market.
However, later in the year, due to uncertainty around the Federal Reserve’s decision and a sluggish month of September, the crypto market suffered massive losses. Bitcoin fell below $109,000 last week but recovered above $112,000. Nonetheless, as inflation fears rise, investors seem to prefer gold and silver as better alternative investments.
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