Dollar collapse breaking news has emerged from economist Peter Schiff, and his warnings are getting attention right now across financial markets. The dollar’s collapse, according to Schiff, will be far worse than what happened back in 2008. Gold is being positioned to replace the US currency as the world’s primary reserve asset.
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Dollar Collapse Breaking News and Predictions With Gold Replacement Insights
Warning Signs Point to Dollar Collapse In 2026
The dollar collapse prediction that Schiff is making stems from what he sees as fundamental structural problems in how the US economy operates at the time of writing. During an interview with Fox Business, Schiff didn’t hold back and stated:
“We are headed for an economic crisis again that will make the 2008 financial crisis look like a Sunday school picnic. The biggest difference between the crisis that we’re about to have and the one we had back then is this one is all in America.”
Schiff’s dollar collapse breaking news centers on the reserve currency status that the US has enjoyed for decades. He explained further:
“We have a dysfunctional, consumer-based credit economy that rests on the foundation of the U.S. dollar’s reserve currency status, and the world is now pulling the rug out from under the U.S. The dollar is going to collapse. The dollar is going to be replaced by gold. Central banks are buying gold to back up their currencies.”
US Dollar Prediction For 2026 Shows Troubling Trends
The US dollar prediction for 2026 outlook has been worsening. Central banks worldwide have more than doubled their gold purchases. Since 2022, these institutions have been buying over 1,000 tonnes of gold annually. This shift is being seen as a vote of no confidence in the dollar.
Gold prices have surged recently, and they’ve broken past the $5,000 per ounce mark. JPMorgan CEO Jamie Dimon, who traditionally has been skeptical of gold, made some surprising comments at Fortune’s Most Powerful Women Summit. Dimon stated:
“It could easily go to $5,000 or $10,000 in environments like this. This is one of the few times in my life it’s semi-rational to have some in your portfolio.”
The US dollar prediction for 2026 is also being influenced by inflation concerns. Schiff pointed out that inflation will be more severe in the coming years, and he said:
“Inflation is going to be much more pernicious over the next few years than it was when Biden was president, unfortunately. That’s what gold and silver are telling you — they are a warning.”
According to Federal Reserve Bank of Minneapolis data, $100 in 2025 buys what just $12.05 did back in 1970. This illustrates how the dollar’s purchasing power has been eroded over time.
Will Gold Replace the US Dollar in Global Markets?
The question of Will gold replace the US dollar is being answered through the actions of central banks and investors worldwide. Citadel CEO Ken Griffin has also expressed concern about this trend, and he noted:
“I now view gold as a safe harbor asset in a way that the dollar used to be viewed. That’s what’s really concerning to me.”
Griffin elaborated on the dollar collapse concerns by adding:
“We’re seeing substantial asset inflation away from the dollar as people are looking for ways to effectively de-dollarize, or de-risk their portfolios vis-a-vis US sovereign risk.”
Peter Schiff has declined to set specific price targets for gold, and his reasoning reveals his Dollar collapse prediction. When asked how high gold could go, Schiff stated:
“I don’t have a target price other than much higher, because there’s no floor on the dollar, so there’s no ceiling on gold.”
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The shift toward gold as an answer to Will gold replace the US dollar is already happening in central bank reserves. For the first time in nearly 30 years, global central banks are now holding more gold than US Treasuries. Approximately 36,000 metric tons of gold are valued around $4.5 trillion compared to $3.5 trillion in US Treasuries.
Since April 2025, foreign central banks have reduced their US Treasury exposure by approximately $183 billion. These funds have been reallocated into gold. This dollar collapse breaking news represents a significant milestone that indicates a long-term structural change in how global reserves are being composed right now.