Gold’s slide off record highs looks like a momentum reset with support building near $4,000, Peter Schiff said. He warned that crypto doesn’t get the same cushion because ETF-style selling and borrowed BTC can accelerate declines. Strong metal prices still help miners, tokenized gold, and non-U.S. dividend plays in a softer-dollar backdrop.
Gold’s run stalled this week, but Schiff described the move as a clean reset inside a strong uptrend, not the start of a reversal. He pointed to support forming near $4,000 and explained that fast drops like this flush leveraged late buyers so the trend can keep climbing.
Schiff also drew a line to crypto, arguing that pullbacks in Bitcoin or in spot-style products usually get amplified by ETF redemptions and loan liquidations, which make digital assets more fragile than bullion on bad days.
### Gold Pullback Framed As Healthy, Not Exhausted
According to Schiff, gold “ran too far, too fast” and did what strong markets do: snap back, wash out overstretched longs, and rebuild under a nearby level. He identified that level around $4,000, calling it the spot where trend buyers can step back in as central-bank demand and rate-cut expectations remain in place.
Silver’s strength alongside gold was another point he used to argue that the metals story is still live, reinforcing confidence in precious metals overall.
### Where Crypto Fails The Same Test: Leverage and ETF Selling Threaten Bitcoin
Turning to Bitcoin, Schiff said the problem is structural, not the narrative. Much of BTC is still borrowed against, meaning a 5-10% drop doesn’t just reset momentum—it can trigger forced selling.
Additionally, spot-style ETF holders tend to behave like momentum accounts. When they exit en masse, there isn’t a guaranteed deep pool of dollar bids to catch the move, and stablecoins don’t magically refill that gap. That’s why, in Schiff’s view, a gold dip is a reset, while a crypto dip can quickly become a slide.
### Miners And Tokenized Gold Still Benefit From High Spot Prices
Schiff sees a second tailwind for gold through practical payments, promoting tokenized gold tied to vaulted metal for everyday transactions. This framework could remonetize gold without abandoning modern payment rails.
Investors have also received a broader allocation message. Schiff believes foreign dividend strategies now offer better relative value than crowded U.S. growth trades. Furthermore, he expects a weaker dollar over time, which historically supports non-U.S. assets and commodities.
Significantly, this combination favors global miners with low costs and clear project pipelines, positioning them well for the coming environment.
https://bitcoinethereumnews.com/tech/peter-schiff-says-gold-drop-is-a-reset-as-4000-support-forms/