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The Tucker Carlson Show

Peter Schiff on Gold’s Dominance Over the S&P and the Plot to Stop You From Noticing

26 Jan 2026

Transcription

Chapter 1: Why did Peter Schiff start buying gold?

4.655 - 9.743 Tucker Carlson

Peter Schiff, thank you for doing this. So when did you personally first start buying gold, physical gold?

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10.504 - 35.182 Peter Schiff

Well, you know, ironically, the first time I bought gold was when I got bar mitzvahed. This was when I was 13 years old. Wow. And so this is in the 70s when the original gold bull market. And so I got my bar mitzvah money. And because of my father, I bought gold. And I ended up selling it. coincidentally, near the highs in 1980.

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Chapter 2: What lies are being told about inflation?

35.583 - 61.469 Peter Schiff

Because gold went from $35 an ounce in 1970 to $850 in 1980. So in the middle of that run, I took my bar mitzvah money, because I probably got bar mitzvahed in 1975, 76. And I took my bar mitzvah money and I bought gold. And then I sold it to buy my first car. which I was a senior in high school. What kind of car? It was an MGB convertible. Nice. Yeah.

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61.489 - 72.541 Peter Schiff

So, although it broke down all the time and I didn't, I bought it. It was a stick shift. I didn't even know how to drive a stick, but I wanted that car. So I had to figure it out as I was going along.

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Chapter 3: How does the government manipulate the economy?

73.101 - 83.953 Peter Schiff

So I happened to get out of gold, you know, near the highs because then gold went into a 20 year bear market, right? From 1980, when gold hit 800,

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Chapter 4: What is the real unemployment rate?

84.524 - 118.054 Peter Schiff

It was, you know, bottomed out at 250 in 2000, 1999, 2000. But that's about when I started recommending it. So I got into the brokerage business in the 1990s and I was a stockbroker. But I also wanted my clients to own gold. I wasn't in the gold business at the time, but I believed that everybody should have some of their portfolio in gold. And so that's when I started recommending it.

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118.635 - 151.692 Peter Schiff

And so it's outperformed by a pretty big margin. The S&P 500, Dow Jones, going back to the beginning of this century, 2000, 2001, if you were to price the Dow in terms of gold, it's down about 70%. Against gold. Yeah. I mean, so there's an illusion that, oh, you know, we have all this prosperity because in the year 2000, the Dow was about 10,000 and now it's almost 50,000, right?

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151.712 - 180.168 Peter Schiff

So that's a big gain when you price it in dollars that have lost a lot of their purchasing power. But when you price it in gold and realize that, hey, gold was 300 back then and now it's 4,300, right? The gold, it took, I think, 45 years ounces of gold to buy the Dow. And I forget what it is now, maybe 16 or 13. You can buy a lot more of the Dow now than you could back then.

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180.188 - 185.558 Peter Schiff

So what that shows you is that the gain in the stock market

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Chapter 5: How does gold compare to cryptocurrency?

185.875 - 214.768 Peter Schiff

is inflation it's not real value that's been created in the market we've just destroyed the value of the currency that we use to price things in right and so you need more dollars to buy stocks but you don't need more gold you could buy stocks with a lot less gold because gold is real money government can't just create gold they can't create inflation and and create gold out of thin air like they do uh federal reserve notes paper dollars

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214.748 - 232.697 Peter Schiff

You know, originally, the dollar in 1792 was defined as a weight of gold. I mean, that's really what the dollar was. It was a specific quantity of gold or silver. And, you know, for a long time, you know, until 1913 when we got the Federal Reserve, we were pretty much just using gold and silver as money.

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233.238 - 258.646 Peter Schiff

And even when the Federal Reserve was created, all the Federal Reserve notes were redeemable in lawful money and gold. And gold was money up until 1971. And even though Americans couldn't redeem their Federal Reserve notes, which we call dollars, they couldn't redeem them for gold. Foreign governments could. And foreign governments held a lot of gold as dollars as a reserve.

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259.107 - 281.233 Peter Schiff

But they did that because they knew that those dollars were not only backed by gold, but convertible on demand into gold. And so we were on a gold standard even through the dollar up until 1971. But once we defaulted and the U.S. government reneged on its commitments to pay gold for its notes, that's when the real inflation started. That's when we really started printing a lot of money.

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281.574 - 290.605 Peter Schiff

And that's why you had the big price increases of the 1970s. And it wasn't...

290.585 - 314.517 Peter Schiff

arabs that were just you know uh jacking up their oil prices because oil went from three dollars a barrel to forty dollars a barrel but it wasn't that oil was getting more expensive it's just that we used to pay for our oil with gold and we started paying for it with paper but all that money we printed it you know in the 60s you know for the war on poverty the great society the vietnam war we ran these big deficits which

314.497 - 336.998 Peter Schiff

were small by today's standards, but they were big back then. And they were financed with inflation. And we saw the consequences in the 1970s. And we may have had a real dollar crisis because the dollar lost about two-thirds of its value during that decade against other currencies like the Swiss franc, the euro, the Japanese yen.

337.338 - 367.06 Peter Schiff

But when Reagan came in and we had Volcker in 1980 and interest rates went up to 20%, And we really had some substantial reforms in our tax system. And we created a lot more confidence in our economy. We kind of stopped the dollar's decline at that point. But now I think we're on the verge of a much bigger crisis. Because I think that this time around, it's not going to be the U.S.

367.08 - 395.05 Peter Schiff

going off the gold standard. It's going to be the world going off the dollar standard. And you really have to understand the degree to which the US has used the dollar and its reserve status as a crutch. And our entire way of life as Americans has been supported by the idea that we could just create dollars out of thin air and then use those dollars to buy what the rest of the world produces.

Chapter 6: What are the historical trends of gold versus the S&P 500?

579.894 - 600.164 Tucker Carlson

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628.388 - 646.603 Tucker Carlson

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646.643 - 665.403 Peter Schiff

Which central banks? Well, the major central banks, other than the West, you know, you're talking about in Russia and India and China and even smaller ones, you know, Poland or various countries are buying gold. And they're buying gold because they want to get out of dollars.

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665.723 - 691.207 Peter Schiff

And in fact, one of the things that happened to really cause this to happen in a bigger way was when Biden was president and he sanctioned Russia. And in sanctioning them, they basically took away a lot of their dollar reserves that they had entrusted in dollars. And we basically pulled the rug out from under them. We sent a message to the rest of the world that you could be next. Yeah.

691.227 - 694.833 Peter Schiff

That, you know, if you hold your reserves in dollars, you're vulnerable.

695.054 - 696.477 Tucker Carlson

Unreliable store of value.

697.078 - 719.726 Peter Schiff

Yeah. I mean, it wasn't even a store of value, but as a reserve asset. Right. And so that was a political impetus. But the real reason for getting out of the dollar is that we're going to destroy its value. We have these runaway deficit spending that is the source of all the inflation that we have. It's the Fed monetizing the debt that the government is creating.

719.986 - 740.649 Peter Schiff

A lot of people don't know what inflation is. They just think it's prices going up because that's what the governments tell them or some economists tell them. But prices going up are a consequence of inflation. They're not inflation. Inflation is an expansion of the supply of money and credit. And when you expand money, you expand credit, right? That bids up prices.

Chapter 7: How does inflation affect the value of money and assets?

800.709 - 825.955 Peter Schiff

It prevents them from going down. See, in a free market economy, in a capitalist economy, the natural tendency for prices is to go down. If you look at the CPI in 1900... Because of efficiencies. Yes. If you look at the CPI in 1900 and you look at it in 1800... It was down by 50%. So for 100 years in America, prices went down. And during that time, we had the Industrial Revolution.

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826.455 - 848.163 Peter Schiff

We had the most rapid period of economic growth in the history of America, which was after the Civil War and into the early 1900s. All the time, prices were coming down. Today, the Federal Reserve says that we need to have 2% inflation. Prices have to go up 2% a year. Why? I mean, why does the cost of living have to go up? Why can't it go down or at least remain the same?

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848.503 - 867.024 Peter Schiff

And what is the answer to that? What's their rationale for that? Well, they have a bunch of BS explanations, and it's all to justify the fact that the government wants inflation. It's not that it's good for us. The government needs it. It's the way the government raises revenue and repudiates its debts. But they have a couple of things that they say.

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867.404 - 881.069 Peter Schiff

One of the things they say is, well, if prices... were going down, nobody would buy anything, right? People would just be constantly waiting for lower prices. And so nobody would buy. And that's the number one reason they say that prices have to go up.

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881.089 - 887.842 Tucker Carlson

And that's all. No one would buy if prices were going down? Yeah, that's how ridiculous it is. Because everyone would be waiting for the bottom to buy a new dishwasher?

887.862 - 907.816 Peter Schiff

Supposedly, supposedly. But of course, We all have cell phones. If that were the case, nobody would ever buy a cell phone or a television set or a computer. Prices go down. But also, if I'm hungry, am I going to wait a year to eat because I think the food is going to be 2% cheaper? If you don't have a dryer, are you going to wait a year? No.

908.016 - 914.305 Peter Schiff

You buy things, they forget that there is a value to having something today versus having to wait.

915.687 - 917.35 Tucker Carlson

Amazon is based on that idea.

917.43 - 933.973 Peter Schiff

Yes. The only reason that you don't buy something now because you want to lower prices because you can't afford it. And so you're hoping that the price will go down and then you'll be able to buy it, which is what the free market does. So it's nonsense to say that we're not going to buy.

Chapter 8: What should investors know about the future of gold?

1922.313 - 1927 Tucker Carlson

I think that's a mystery. It's a mystery. All of a sudden, no one can buy a house, but house prices are still high.

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1927.34 - 1946.447 Peter Schiff

Yeah. Well, you know, what's happening is a lot of the people who own their homes and have these low mortgages, they don't feel any pressure to put them on the market. I mean, if they can get a high price, they'll sell. If not, they're just staying on their homes. Yeah, it would be crazy. Meanwhile, we're not building a lot of new homes because it's very expensive to build them.

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1946.427 - 1967.71 Peter Schiff

And in fact, Trump has made them even more expensive with tariffs. So we have tariffs on lumber, we have tariffs on copper and steel and all the things that need to build houses. Plus, we're chasing out all the workers. I think something like 20% of the people who work in construction are illegal, right? So if they're not here, so you're driving up, well, that's just bullshit, right?

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1967.69 - 1992.837 Peter Schiff

what you said is well they are got 50 million illegals in the united states and they're all being paid not all but a lot of them are on the government subsidies yeah so maybe if you took those away they would go into the construction trades you've got a lot of unemployed people who could build houses yes but they're not going to take those jobs unless you pay them higher wages i mean that's the problem so you're driving up the cost of building homes so fewer homes are being built right regardless of what you think of the immigration policy

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1992.817 - 2001.114 Tucker Carlson

No, but I'm just saying it's not a potential. We have all kinds of labor problems. No one can find labor, but it's not because there aren't enough people without work. There are a lot of people.

2001.174 - 2012.698 Peter Schiff

No, there are a lot of people that should be working, but the government has given them an alternative. And that is a huge problem. That is a whole different topic. But the point is that

2012.678 - 2032.539 Peter Schiff

There aren't a lot of homes being constructed and there's not a lot of homes for sale because the people that own the homes, you know, they have such a good deal on their mortgage that they don't... Of course, of course. And rather than even sell it, you'll rent it out because now you can rent it out and pay the mortgage and collect the rent. And, you know, you have a good spread there.

2032.559 - 2051.478 Peter Schiff

Of course, they put it on Airbnb. But eventually, right? People have to sell their houses for whatever reason. People die, people get divorced, people move. Houses are going to come on the market. And of course, eventually people are going to lose their jobs. I mean, we're headed for a very severe recession. I think we've been in recession for years. It's just going to get a lot worse.

2052.078 - 2075.927 Peter Schiff

And a lot of the houses are going to come on the market and real estate prices are going to go down substantially nationwide. And that creates a whole new problem because now if people lose their home equity, they're Now they may just default on their mortgage. And now in addition to sitting on all these underwater mortgages, banks are going to start to lose money on defaulted mortgages.

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