Insights

2024 has been an exciting year thus far for precious metals and critical materials. This webcast takes a technical perspective on the key drivers for gold, silver, uranium and copper, as all four metals enjoy positive markets. We also provide strategic portfolio allocation ideas for precious metals and critical materials.

In this exclusive interview with Metals and Miners, John Hathaway offers a comprehensive analysis of the current economic landscape. From the deteriorating economic metrics to the growing threat of de-dollarization, Hathaway provides expert insights on the most pressing issues facing investors today. John Hathaway is a Managing Partner and the Senior Portfolio Manager for Sprott Asset Management, and has more than five decades of experience as portfolio manager, founder and Certified Financial Advisor.

John Ciampaglia, CEO of Sprott Asset Management, and Jimmy Connor of Bloor Street Capital discuss the flows into the Sprott Physical Gold Trust on the back of higher gold prices and the Sprott Physical Uranium Trust, on the news of lower production from Kazatomprom.

Gold has surged above the psychological $2,500 level, driven by factors not easily explained by traditional market variables, suggesting possible central bank or sovereign activity rather than usual market dynamics. The long-term bullish pattern in gold's technical charts indicates momentum toward the $2,600 level, with potential for further advancement to the $3,000-3,300 range based on Fibonacci projections.

Gold’s breakout may signify more than one might infer from the continuing lack of interest. Inflows into the precious metals mining space have the potential to generate compelling outcomes. We believe the window of opportunity to position this sector on attractive investment terms is beginning to narrow quickly.

Gold has been on the move since Q2 ended, after having gained 12.79% year-to-date as of June 30, gold's best six-month start since 2020. Gold enjoyed strong support from central bank buying. Silver closed Q2 at $29.14, its highest quarterly close since Q3 2012. Silver was supported by the gold breakout and global monetary expansion policies.

What will take the gold price higher? John Hathaway, Senior Portfolio Manager, provides his thoughts on why gold isn't moving and what will take it higher.

Replay our webcast, focused on gold and silver, and featuring John Hathaway and Maria Smirnova. Gold is enjoying strong support from central bank buyers like China, looking for an alternative to the U.S. dollar. Silver is benefitting from increased demand for photovoltaic solar panels, which climbed to new highs in 2023.

The rise of AI and data centers is likely to significantly increase global electricity demand, creating challenges for power grids but also opportunities for stable, clean energy sources like nuclear power. AI data centers are also likely to support increased demand for copper-intensive electrical equipment.

John Ciampaglia, CEO of Sprott Asset Management, joins CNBC's Fast Money to talk about the gold market and explain how central banks and overseas buyers are driving current demand. 

The breakout in gold prices since February has been largely ignored by mainstream investors. Gold bullion’s breakout is significant in that it represents the positive resolution of a three-year standoff, consolidation, or tug of war between bulls and bears. The indifference of investors in Western capital markets suggests to us that there is significant potential for further upside.

Gold reached an all-time closing high and is up 8.09% YTD (as of 3/31/2024) after rising 13.10% in 2023. We believe several fundamental factors are in place for gold to move higher, in particular, strong central bank buying. We also see three drivers for a higher silver price: 1) silver tracks rising gold due to central bank buying, 2) reflation trade and 3) increased solar panel demand.

Electricity demand is expected to grow 86% by 2050. At the same time, most of the world is committed to seeking zero-carbon emissions and increasing nuclear energy capacity. At the center of this growth and transformation are uranium and copper – two critical materials that are in high demand and limited supply. These materials and their miners are potentially attractive investment opportunities.

What forces are likely to drive energy transition materials and precious metals markets in 2024 and over the next decade? We discuss 10 critical macroeconomic and market-specific themes ranging from deglobalization and climate policy to the new commodity supercycle and a potential silver price breakout.

We firmly believe that the investment case for gold mining equities is clear and compelling, grounded in both value analysis and situational factors. A primary challenge is having the patience to wait for investors to discover the attraction. In our view, investing in gold equities is an asymmetric proposition of minimal downside offset by outsized upside potential. 

At the 2023 Schwab Impact conference, Sergio Lujan joined Keith Black of RIA Channel to discuss Sprott’s specialization in precious metals, the current state of the gold market, along with our outlook.

Stephanie Pomboy and Grant Williams, hosts of the popular podcast Super Terrific Happy Hour, interview a true legend of the precious metals industry, John Hathaway. John explains where he feels the world’s central banks currently stand on gold, analyzes the relationship between both real interest rates and the U.S. fiscal situation as they pertain to precious metals prices and discusses their potential impact on the price as we move into 2024.

Replay our webcast which focused on how the global energy transition is changing the mining industry. Miners are shifting focus from a China-led commodity supercycle focused on industrialization and urbanization to a new cycle driven by clean energy and renewable energy technologies. Forward facing metals play a significant role in this dynamic.

On Friday, December 1, 2023, spot gold bullion registered an all-time high closing price of $2,072.22, surpassing the prior closing high of $2,063.54 reached on August 6, 2023. Risk assets have been helped by lower long-term bond yields, a weakening U.S. dollar and record gold buying of by central banks.

Ed Coyne, Senior Managing Partner, sits down with Gillian Kemmerer of Asset TV to discuss the energy transition to uranium and other battery metals, and what investors should take into consideration in this space. He also shares Sprott's outlook on gold. 

Despite a pullback on gold investments, demand from sovereigns and central banks remains unwavering. Over the past decade, China has been committed to bolstering its gold reserves to enhance its economic and geopolitical standings. Silver is likely to be in high demand as the energy transition expands, given it is critical to solar PV panel technology, EV batteries and 5G cellular service. 

Despite recent weakness in gold and precious metals stocks, we believe gold may be poised for stronger performance in the coming months. The Federal Reserve's "higher for longer" stance on interest rates is unsustainable and could lead to a general credit deflation and a recession. Trouble is brewing in the banking system and the labor market, which could further support a rise in gold prices.

John Ciampaglia, CEO of Sprott Asset Management discusses why a higher uranium price will help incentivize much needed production for the world's growing nuclear fleet. John also discusses his outlook on gold, silver, copper, lithium and more.

In the first half of 2023, the gold bullion price rose by 5.23% despite competition from a euphoric equity market. Even with contrasting approaches, central banks and investment funds became the main players shaping the gold market in the first half of the year. Central bank buying drove demand, and gold is reverting to its historical role as a significant reserve asset as central banks seek to diversify amid geopolitical uncertainties.

Gold mining stocks are inextricably connected to the price behavior of gold bullion. Yet their recent response to the gold bull market has been disappointing. If gold should rise above the psychological $2,000 threshold, this may provide a strong catalyst for gold mining stocks. 

Energy transition metals miners posted strong results in June, with uranium mining equities leading the group. The U.S. is entering the early stages of a manufacturing supercycle driven by massive energy transition investment, which includes building a secure and resilient domestic EV battery supply chain. The U.S. and EU are likely to replace China as the primary drivers of future metals demand, as China's two-decades-long commodities dominance has likely crested.

Gold attempted to breakout above $2,050 in early May before drifting lower as the U.S. debt-ceiling drama deepened and the U.S. dollar strengthened. At the same time, global central banks have been accumulating gold at a record pace. This highlights gold's role as a neutral reserve asset that has the potential to mitigate increasing counterparty risks amid escalating geopolitical tensions.

"In our opinion, the term showdown is an apt description of the current situation, in which economic, political and social developments are on the brink of a fundamental change of course. The current situation is also unique because we are not dealing with a singular showdown. Multiple escalations are occurring simultaneously and have the potential to further inflame each other."

Replay our webcast featuring John Hathaway and Doug Groh, discussing the current outlook for gold and gold mining equities. Gold has proven to be an effective safe haven asset during this challenging period, which began with the early 2022 Russia-Ukraine invasion and was followed by rising interest rates, stubborn inflation and the 2023 banking crisis. We believe near-term support for gold will remain at ~$2,000 and that markets are likely to test new highs.

Sprott CEO Whitney George discusses the global energy transition and the growing interest in critical minerals investing with Asset TV's Jonathan Forsgren. George explains how Sprott expanded beyond "all things gold" to offer physical uranium, as it forged a path to becoming a recognized asset manager in the energy transition space.

The gold market continues to be bullish as the probability of a recession rises, regional banking stress resurfaces and the Fed seems determined "get inflation down to 2%, over time". Globally, we are entering a more challenging period featuring subpar economic growth, increasing risks to systematic financial stability, stubbornly high inflation and rising geopolitical risks. Against this backdrop, we believe gold should perform well, even if the U.S. debt ceiling disaster is averted.

In Q1 2023, precious metals bullion and equities showed strong YTD momentum, with gold closing above the psychologically important $2,000 per ounce mark and silver reaching $25. Gold/silver mining equities also posted notable gains. We believe that investments in precious metals bullion, especially, have the potential to provide a safe haven "moat" to investment portfolios.

In March, gold posted its highest monthly close since July 2020 and rounded out a solid Q1 2023 gain of 7.96%. Gold is now up 21.38% from last autumn's low (9/26/22) following the most aggressive central bank purchases in decades and gold investment flows catalyzed by the U.S. banking crisis. We are very optimistic given that many significant long-term bullish macro factors for gold have become stronger, while some shorter-term cyclical gold bearish factors have faded.

Let it be said here that the financial media at best pays only lip service to the thought: there is likely no safer asset than physical gold. The yellow metal has no counterparty risk (unlike all other financial instruments including bank deposits and government bonds), is highly liquid and has an unbroken record of retaining value in absolute terms and relative to financial assets.

Whitney George, Sprott CEO: "In addition to our traditional precious metals focus, we have entered the energy transition materials space, which began with the creation of Sprott Physical Uranium Trust.... I believe Sprott is well equipped to offer  energy transition investments, which will be a very important theme in the next 10 years."

Gold fell in February, closing the month at $1,827 in a correction characterized by a stall in buying, but not selling. Since gold's autumn 2022 low of $1,622, global central banks have been buying gold at record rates; more than three times their long-term averages. The current scale of central bank buying is massive — an annualized rate of 1,724 tonnes vs. an average of 512 tonnes over the past decade. Central bank gold purchases as a percentage of global gold demand have also tripled to 34% from their average of 11% over the past several years.

January was another positive month for gold bullion. We saw strong gold buying from China, with estimated tonnes purchased at the highest level since 2017. Price action and trading desk anecdotes indicate significant buying from China's "official sector", including the People’s Bank of China. This was in stark contrast to China's accelerated selling of U.S. Treasuries.

This year’s top 10 list offers Sprott’s thoughts on what will likely drive markets in the coming year and decade, from a macro perspective and the vantage of our asset classes: Precious Metals and Energy Transition Materials. We believe the global clean energy transition will grow more urgent as energy markets continue re-ordering and energy security becomes synonymous with national security. The signposts point to a commodity-intensive, inflationary and capital-intensive decade where energy transition materials and precious metals will become far more valued than in the prior market regime.

Gold was an effective hedge in 2022, returning -0.28% for the bear market year. The yellow metal outperformed the S&P 500 Index, which declined 18.11%. Gold mining equities also outpaced the S&P 500. Looking ahead, we believe investors willing to seize the opportunity presented by inexpensive, unloved gold mining equities, will have the potential to reap substantial benefits from breaking the ranks of groupthink.

Gold and gold mining equities posted strong results in November, up 8.26% and 16.79%, respectively. Silver gained 15.81%. Risk assets were catalyzed higher by the Fed's signal that it would slow the pace of rate hikes, a better-than-expected October inflation report and speculation that China may phase out its zero-COVID policy.

2022 has been a difficult year for many asset classes. Markets were historically volatile, with higher-than-expected inflation, quickly rising interest rates, the Russia-Ukraine war and the threat of a global economic recession. While metals and mining investments shared in 2022’s volatility, we look ahead to brighter opportunities in 2023.

The tough year continued in October for many asset classes, including gold and other precious metals. Gold demand, however, was strong in Q3 2022 as long-term investors took advantage of lower prices to build positions. With financial system stress cracks showing up, central banks are now trying to balance aggressively fighting the highest inflation levels in 40 years while maintaining financial stability in over-leveraged governments and markets. 

The parabolic rise in the dollar contains the seeds of its own demise. The kiss of death, as for all overcrowded trades, is that it has become front page news. Dollar strength is a mirage, the reverse image of the flaw inherent in all paper currencies. The fatal flaw is that they are the ever increasing issuance of fiscal decay. The façade of dollar strength foretells a comeuppance for all currencies in the form of a steep devaluation in terms of gold.

Relative to most asset classes, gold continues to outperform in a broad-based bear market. Since Q2 2020, gold has held above $1,700 but in mid-September, a significant risk-off wave occurred, breaking nearly every risk asset lower. The primary causes were higher than expected inflation data forcing yields (especially real yields) and the USD higher, two important gold drivers. With $1,700 support broken, the next level of support is about $1,550, the approximate pre-COVID trade level.

It’s been a summer of doldrums for many asset classes. In our universe, however, uranium and other energy transition metals were a welcome exception to the market carnage — the spot uranium oxide composite was up 8.73% in August and 25.45% YTD. Precious metals, by contrast, lost ground as a liquidity crunch took hold in response to market declines and volatility. Gold lost 3.11% and silver fell 11.62% in August, while gold mining equities magnified gold bullion's loss by declining 10.00%.

Maria Smirnova, Senior Portfolio Manager & Chief Investment Officer, Sprott Asset Management, is interviewed by Taylor Combaluzier, Red Cloud Financial Services, in Fireside Chat: The Silver Perspective. Maria joins Tavi Costa, Partner & Portfolio Manager, Crescat Capital LL. and Peter Krauth, Author of "The Great Silver Bull" and Editor of the Silver Stock Investor Newsletter.

July was another difficult month for most asset categories and was characterized by selling capitulation into exhaustion. Much more aggressive Fed rate hike expectations relative to other global central banks were a significant cause of U.S. dollar (USD) strength and rising real yields, which adversely affected gold. Although gold bullion lost ground, it remains relatively better off than many other assets for the year at -3.46% YTD through July 31, 2022.

If the Fed is to abandon the practice of inflating financial assets, which would represent a secular shift in direction, substantial deflation lies ahead from which the purchasing power of gold is expected increase in real terms. If there is a return to business as usual, i.e., papering over policy mistakes, we believe that the gold price has the potential to rise to all-time highs in nominal terms.

Gold continued to perform as a safe haven store of value in what has been one of the most challenging six-month periods for markets in decades. Gold has managed to stay above the $1,800 support level despite the broader market carnage. By contrast, equities (as measured by the S&P 500 Index) recorded their worst first-half start to a year since 1970 and bonds (U.S. Treasury Index) registered their worst first six months since 1973 (based on available data).

Ted Oakley of Oxbow Advisors interviews Sprott's John Hathaway on the gold bullion and gold equities markets. Oakley and Hathaway discuss why investors should consider adding gold to their investment portfolios and explore how gold affects portfolio diversification.

May saw selling across most asset classes and scant appetite for safe haven assets such as gold. However, gold bullion has outperformed many other asset classes YTD and continues to do its job. Gold held its value with low correlation to the S&P 500 and lower volatility than other assets.

Gold lost 2.09% in April, a month marked by across-the-board outflows in many asset classes as volatility surged. By contrast, gold held in ETFs has increased sharply this year as the safe-haven flight continues. April was tough on many investment sectors, with the S&P 500 Index down 8.80%, the Nasdaq Composite Index declining 13.37% and U.S. Treasury bonds falling 3.10%. The U.S. dollar was one of the few beneficiaries as it neared multi-year highs.

The price of gold has been treading water for 10 years while the investment fundamentals have improved dramatically. That is why, in our opinion, significant upside lies ahead for gold and related equities. Putin’s war introduces yet an additional reason to stoke investment demand for the yellow metal. It is not only war in the kinetic sense, but the reserve currency and cyber aspects that have far-reaching implications for gold. 

Gold posted its all-time highest quarterly close on March 31, 2022, ending a volatile month that helped gold climb above $2,070 on March 8. By contrast, the U.S. Treasury Index suffered its worst quarter since 1973 and the S&P 500 Index posted its first negative quarter since Q1 2020. While gold may have climbed back to its highs on safe-haven flows, other positive gold supports are definitely in play.

Sprott Market Strategist Paul Wong joins Asset TV's Jenna Dagenhart to discuss Sprott's outlook for gold.

Paul Wong: "The Russian-Ukraine conflict is probably one of the biggest macro drivers in the marketplace. Many commodity users, transportation providers and financial facilities are heading toward self-sanction. There is almost a semi-defacto oil embargo going on right now....Before Russia-Ukraine, the gold market had started shaking off the hawkish Fed rhetoric. Russia-Ukraine has just amplified gold's value as a safe haven asset."

Throughout history, gold has played a prominent role in the advancement of human civilization. Seen as a representation of the sun, of the gods and of true value, gold is a form of real money without counterparty risks. Symbol Au, atomic number 79, gold has been used to adorn the tombs of the great pharaohs and to help power spacecrafts that extend the horizons of humanity’s domain. Learn about gold’s culture, uses and history.

The precious metals complex rebounded strongly in February as other assets faltered. Gold bullion is up 4.36% YTD through February 28, 2022, and silver bullion has increased 4.90%. Gold mining equities rallied and have gained 10.17% YTD. Investors sought safe-haven assets given the heightened concerns over the economic/market risks from rising interest rates and the escalation of the Russia-Ukraine conflict.

Stephanie Pomboy and Grant Williams, hosts of the popular podcast Super Terrific Happy Hour, interview a true legend of the precious metals industry, John Hathaway of Sprott Asset Management. The three discuss the Fed, inflation, the financial markets and the outlook for gold bullion and gold stocks. 

Charlotte McLeod of Investing News Network interviews Shree Kargutkar: "I believe that we are on the cusp of a generational opportunity today. I would encourage every viewer to dust off their old notebooks and do a little research on precious metals mining companies, especially those that are well managed, with attractive balance sheets."

Gold reached a high of $1,848 in January, but slid following the Fed's exceptionally hawkish statements at the January FOMC meeting. Market risks are rising and we believe that gold, as it did in 2018, is likely to stage a breakout given its safe haven characteristics.

For 2021, the gold price averaged $1,799 compared to $1,770 for 2020, up $29, despite losing 3.64% for the twelve months. Gold traded in a narrow range for most of last year as markets were ping-ponged by inflation and rate hike expectations. Based on historic patterns, gold's lengthy consolidation indicates that prices have the potential to rally sharply and quickly in the coming year. We explain why in our List of Top 10 things to watch for gold investors. 

With Fed policy taking a more hawkish turn, the fire hose of liquidity that has fueled market mania is being turned off. At this moment, it appears that confidence in the Fed and attraction to gold are binary. Our view is that a position in gold offers a very favorable asymmetric risk-reward proposition on the possibility that confidence will not survive 2022.