Peter Schiff, chairman of Euro Pacific Asset Management and longtime gold advocate, told VRIC Media this week that the U.S. economy is far more fragile than markets currently reflect, and that inflation is heading higher, not lower. He expects gold to reach $20,000 over the next decade and has sharply criticized Strategy Inc.'s perpetual preferred stock STRC as a 'pure Ponzi scheme.'
Inflation Data and Fed Policy
Schiff pointed to the year-over-year CPI reading of 3.8%, up from 3.3% the prior month, and said the annualized April figure is running closer to 7.2%. Oil prices, he noted, were already higher than when those numbers were calculated. He does not expect upward pressure on prices to let up. The Fed, he argued, is still holding an easing bias while inflation worsens, and markets are pricing in rate cuts that will not arrive. “The markets are really set up for a major disappointment,” Schiff said. He warned that 30-year Treasury yields could break above 8%, a level that would inflict serious damage on U.S. government finances given the current debt load. The 20-year high sits around 5.1%. Getting to a 30-year high, he said, is a different situation entirely.
Schiff also flagged the Fed’s balance sheet as a direct concern. He said it has expanded by more than $200 billion so far this year and that the money supply is growing at a rate of at least 5%, which he called incompatible with a 2% inflation target. He expects the Fed to accelerate bond purchases, particularly if the 10-year yield breaks decisively above 4.5%. The result, he said, will be a much larger balance sheet and more inflation, not less.
Debt and Social Security
On the federal debt, Schiff said the official figure of roughly $39.2 trillion understates the real problem. When unfunded liabilities like Social Security, Medicare, and pension commitments are factored in, he puts the total closer to $150 trillion. He called the U.S. “completely insolvent” as a nation and said foreign central banks have already started drawing the same conclusion, which is why gold has been moving higher. Schiff described Social Security as a Ponzi scheme structured around government IOUs.
Gold and Mining Stocks
Schiff offered a straightforward comparison: In 1971, an ounce of gold cost $35. Today it trades near $5,000. Burying $35 in the ground that year and digging it up today leaves someone with $35. Burying gold leaves someone with $5,000. He said the same forces driving that move over the past 50 years remain in place. He projected gold could reach $20,000 over the next decade. Schiff said mining stocks offer better upside than the physical metal for investors with higher risk tolerance, though physical gold and silver remain essential for everyone.
STRC: A 'Pure Ponzi'
Beyond his macro outlook, Schiff has been targeting Strategy Inc. chairman Michael Saylor and the company’s perpetual preferred stock, STRC. Strategy issues STRC as a high-yield product paying roughly 11.5% annually, marketed in part to income-seeking investors, including retirees. After Saylor suggested in an early May interview at Consensus Miami that Strategy might sell bitcoin to cover STRC dividends, Schiff called the product “a pure Ponzi” on X. He posted that if Strategy ever had to choose between selling bitcoin or suspending STRC dividends, Saylor would sacrifice the dividend and crash the stock. He later criticized Saylor’s walkback of the statement as technically incoherent. Schiff has accused Saylor of violating U.S. Securities and Exchange Commission (SEC) marketing rules by describing STRC as appropriate for retirees seeking low-risk wealth preservation. “Saylor’s comments will help retirees who lose money win lawsuits against MSTR,” he wrote. He added that STRC diverts demand away from bitcoin itself, since the 11.5% yield attracts capital that might otherwise go directly into BTC, while Strategy must pay that yield regardless of what bitcoin does.
In summary, Schiff sees gold, silver, and mining stocks as the primary hedge through 2026 and beyond, while warning against synthetic exposure to bitcoin through structured products like STRC.