Gold Returns to Traditional Safe Haven Status: Peter Schiff and the Deep Game of Global Asset Allocation

Against the backdrop of increasing global economic uncertainty, the value struggle between gold and Bitcoin has once again become the focus. Peter Schiff reiterates that 'gold is the real currency' and points out the trend of central banks increasing their gold reserves while selling off U.S. Treasury bonds, revealing the deep logic of global asset allocation returning to traditional safe-haven assets.

Peter Schiff's core argument lies in the intrinsic value of gold and its historical validation. Its value stems not only from market trust but also from actual demand—this 'hard currency' attribute stands in stark contrast to cryptocurrencies, which lack practical use.

Supporters emphasize Bitcoin's fixed supply, decentralization, and cross-border efficiency, considering it 'digital gold.' However, Schiff points out its fatal flaw: the lack of intrinsic value.

Schiff's conclusions are highly aligned with global central bank actions. In the first quarter of 2025, global central bank gold reserves increased by 228 tons, with emerging market countries like China and India increasing their holdings by over 30%. Behind this trend is the challenge facing the U.S. dollar-dominated global monetary system.

In this context, gold has become an important tool for central banks' 'de-dollarization.' Schiff predicts: 'Gold will advance towards $4000/ounce, and the process of central banks selling U.S. Treasury bonds while increasing gold holdings is far from over.'

For investors, the gold versus Bitcoin debate is not a choice between one or the other, but a trade-off between risk and reward:

Gold: Suitable for long-term allocation, hedging against inflation, geopolitical risks, and black swan events;

Bitcoin: Can serve as a high-risk asset, but one must be wary of regulatory policy changes and technological substitution risks.

Peter Schiff's belief in gold is essentially a return to the 'nature of currency'—currency must be a commodity, not merely a speculative symbol. In times of global economic turmoil, the safe-haven attributes of gold and the technological innovations of Bitcoin each hold value, but investors must remain clear-eyed: any asset detached from intrinsic value will ultimately revert to the mean. As Schiff states: 'You can use digits to record ownership of gold, but you cannot create gold itself with code.'

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