Insights

Remy Blaire of The ETF Show interviews Ed Coyne, Senior Managing Director of National Sales at Sprott Asset Management, and gets Sprott's outlook for gold bullion, gold equities and how ESG impacts miners.

We caution our clients that 2019’s uniquely favorable market conditions are unlikely to be sustainable.... Gold performed extremely well in the face of this year’s market jubilee, which transpired amid supportive conditions including a stable U.S. dollar and benign inflation. For twilight surfers, however, we believe gold’s role as a lifeguard has never been more important.

Peter Grosskopf, CEO of Sprott, joins BNN Bloomberg for a look at M&A activity within the Canadian gold sector. Grosskopf says that while big-name gold miners like Barrick and Newmont have gone through notable acquisitions this year, we are likely to see a significant number of junior miner acquisitions in 2020.

November marked the third month of consolidation for gold bullion and gold equities. We see this as a pause in a long-term bullish trend: YTD gold bullion has gained 12.69% and gold equities are up 33.35% as of 11/30.

Gold mining stocks have soared approximately 30% so far in 2019, based on the performance of the NYSE Arca Gold Miners Index (GDM) as of November 15.¹ Over the last 12 months, the sector is up nearly 50%. Some investors may assume that gold stocks have run their course. On the contrary, we think that the gold mining equities still have a great deal of upside to offer.

Gold bullion has seen a double-digit YTD advance in 2019, and gold mining equities have also posted notable returns. Tocqueville Asset Management's John Hathaway and Ryan McIntyre join Ed Coyne, Senior Managing Director at Sprott Asset Management, to discuss their outlooks and suggest the optimal gold portfolio allocation for most investors.

Gold bullion consolidated in October, closing the month at $1,513, a 2.75% gain; YTD gold is up 17.97% as of 10/31/19. Silver bullion rose 6.55% for the month and has gained 16.86% YTD. As gold companies report Q3 earnings in the coming weeks, we expect robust earnings results to lift gold equity prices. The timing may be favorable as we are also heading into the best consecutive four-month seasonality pattern for gold mining equities.

This Real Vision video features John Hathaway, Senior Portfolio Manager of Tocqueville Asset Management, being interviewed by Dan Tapiero of DTAP Capital. They take a closer look at gold’s recent breakout and explore why gold equities are so attractive right now.

Gold has been on a tear in 2019. The gold price recently breached $1,500, a remarkable performance since June, when it smashed through the ceiling of its long-term range under the $1,370 level. This is especially impressive when considered in the context of a reasonable economy, a strong U.S. dollar and resilient equity markets throughout 2019. So, what gives?

Peter Grosskopf, CEO of Sprott, shares his outlook for gold and the economy with Bloomberg's Shery Ahn and Amanda Lang on Bloomberg Markets.

We believe the precious metals bull market is just in its early stages. Ed Coyne, Senior Managing Director, National Sales at Sprott Asset Management, joins special guests Doug Groh and Ryan McIntyre, Portfolio Managers at Tocqueville Asset Management, to discuss their outlooks for gold bullion and gold equities, and suggest the optimal gold portfolio allocation for most investors.

Given gold’s sharp rise since May, September’s correction was not unexpected. We believe it is reflective of a new consolidation phase, and likely to be short term in nature. All factors that we consider to be significantly correlating to gold bullion indicate that we are still in the early stages of a major long-term advance.

For many U.S. investors the returns provided by owning physical gold — and the other precious metals including silver, platinum and palladium — come with a sobering surprise when the assets are sold and it’s time to pay taxes. The reason: The U.S. Internal Revenue Service (IRS) categorizes gold and other precious metals as “collectibles” which are taxed at a 28% long-term capital gains rate. 

In our view, gold’s role as a non-correlating store of value has rarely offered more portfolio utility than it does today....The most troubling legacy of contemporary central banking has been the emergence of negative nominal interest rates. The fact that they actually exist, only highlights the dire nature of global financial imbalances. 

Gold added $110 in August to close the month at $1,524, gaining 7.8% for the month. YTD gold is up 18.6%, ahead of the S&P 500 Index's rise of 15.34%. Gold equities impressed even more, climbing 46.4% YTD.

Platinum may claim 2019 as a turning point year despite a volatile first eight months. YTD through Friday, August 30, platinum’s spot price has jumped 17.34%. Many indications point that platinum’s multi-year period of stagnation may finally be ending.

Gold is clearly responding to a global pivot by central bankers back towards concerted monetary easing, and the intractable nature of excessive global debt levels suggests we are in the very early innings of the developing easing cycle. In short, for gold this is the real deal and we suspect things are just getting started.

The debate over gold’s place in a modern investment portfolio has been well covered. Call it the “Pet Rock” versus the “End of Fiat Currency” grudge match. But the facts are not subject to such intense interpretation....An enormous transformation of the gold market can occur once digital gold attracts the volumes needed to make it a serious business.

Shares of Sprott (TSX: SII) have posted big gains this year as gold prices continue to climb higher. Sprott CEO Peter Grosskopf joins BNN Bloomberg to discuss his outlook for the precious metal and the firm's acquisition of Tocqueville Asset Management's gold business.

July was positive for both gold and silver, which were propelled by the Fed’s interest rate cut on July 31, its first cut in 11 years. Any hope that this is a "one and done" rate hike has quickly been dashed with the latest U.S.-China trade war salvo. The long-term picture remains firmly intact. Gold and silver continue to rise as the market adjusts to a new central bank easing cycle.

We predicted that 2019 could surprise to the upside. YTD, through the Friday, July 19 close, gold bullion was up 11.14% and silver bullion has gained 4.58%....The wind is now at our backs and we believe that both gold and silver will climb higher. Silver, in particular, has the potential to significantly outperform gold.

Last week, gold bullion continued its bullish consolidation ($1,380 support, $1,440 resistance), and gold equities recovered to touch new 52-week highs as Federal Reserve Chairman Jerome Powell reaffirmed the likelihood of a July 31 interest rate cut.

To recap gold’s positive trend, gold continues to trade above the $1,370/80 per ounce level which verifies a critical multi-year base breakout. Gold’s rise has been impressive as multiple assets have corroborated the move, and the price action on many gold-related assets has been emphatic.

Ryan McIntyre, Portfolio Manager of Sprott Hathaway Special Situations Strategy, discusses how intrinsic value creating activities are likely to continue across the gold mining industry: "Both large and small companies are examining many alternatives to add value independently of the gold price."

Gold has moved above the critical $1,400 mark for the first time in nearly six years. We believe that gold may be decisively breaking out of a six-year cycle and that this may be the beginning of a powerful multi-year rally. It's an opportune moment for CEO Peter Grosskopf to share his guidance on gold investing.

Rick Rule, Senior Managing Director of Sprott, interviews Trevor Raymond, Director of Research at the World Platinum Investment Council, about promising signs for the platinum market, after several years of weakness.

Charley Wright of Strategic Investor Radio interviews Ed Coyne, Senior Managing Director at Sprott. They discuss Coyne's unconventional career path from architecture to finance, and explore why precious metals are one of the best alternatives for investor portfolios.

Donald Luskin writes that a consensus for a June interest rate cut is forming: "In the present expansion, the funds-10 curve inverted in late March. So far, at least Powell has not made the mistake of hiking rates. But he hasn’t cut them. We think he should, and we think he will."

A two month bitcoin rally has reignited the gold-versus-bitcoin debate. We view such either-or comparisons of gold and bitcoin as somewhat specious, because we see little commonality between the two assets. Gold continues to function as a reliable store of value and productive portfolio-diversifying asset. In contrast, bitcoin continues to augment its reputation as a highly erratic speculation. Bitcoin’s investment merits, at least to date, have proven distinctly different from gold’s portfolio utility.

Silver, platinum and palladium (the “white metals”) join gold (the “yellow metal”) to complete the quartet of the world’s most precious metals. Although gold tends to overshadow them, the white precious metals have the same potential to hold an essential role in an investor’s portfolio.

Sprott is pleased to be a major sponsor of the Incrementum's 13th edition of the annual In Gold We Trust report. Authors Ronald Peter Stoeferle and Mark Valek explore the erosion of trust in international monetary policy: "The steady buying of gold and the repatriation of central bank gold clearly indicate growing mutual distrust among central banks." 

"Most investors do not realize that gold is one of the world’s most liquid currencies and assets, trading with volumes equivalent to those of the euro or U.S. Treasury bond benchmarks. Although similar in philosophy, gold blows Bitcoin away on any measure by which the two can be compared....Perhaps now is finally the time for investors to benefit from a 'life preserver' while others enjoy the card game on the decks of the central bank-piloted Titanic."

Many investors turn to gold to hedge against the prospect of a bear market, defined as a prolonged downturn in which stock prices fall by at least 20% over two months or more. Gold is considered the undisputed king of uncorrelated assets, and is a proven, safe haven investment that lets investors sleep at night.

Tocqueville and Sprott Asset Management smell opportunity in a woebegone asset: gold.

Institutional Investor's Julie Segal interviews John Hathaway, Tocqueville Asset Management, and Whitney George, Chief Investment Officer of Sprott Asset Management. 

Peter Grosskopf, CEO of Sprott, was a keynote speaker at the recent May 1-2 Mines and Money New York Conference. He joins KITCO News' Daniela Cambone to discuss the macroeconomic forces providing tailwinds for gold.

Silver has faced a challenging investment environment, and over the past three years, the metal has underperformed gold. But with silver's price hovering at $15 per ounce, we see tremendous investment upside — with little downside — given what we view as very positive developments in the market.

Ed Coyne, EVP National Sales, joins Juan Carlos Artigas of the World Gold Council, and two other experts, to discuss real assets like gold. Coyne on gold: "Most investors are surprised to learn that over the past two decades, gold has actually outperformed the S&P 500."

On the surface, precious metals activity was subdued for the week ending Friday, April 26. Spot gold rose 0.85% to $1,290.35 and continues to hover just below the $1,300 threshold, with trading reflecting a technical tone.

We believe a new gold mining mergers and acquisitions (M&A) cycle has been ignited, and we expect this merger boom to accelerate over the next several years. Exploration is down, and new gold discoveries are scarce. Miners are strategically combining in order to increase production, reduce costs and improve operations. 

As the gold price has oscillated around the high-profile $1,300 level throughout 2019, it has become increasingly apparent that strong demand from Eastern (physical) markets below $1,300 is roughly offsetting a lack of urgency in Western (paper) markets above that price point.

Silver has been a lackluster performer this year, but as investors’ appetite for gold improves, silver might share in the yellow metal’s prosperity. Barron's checks in with Sprott's Maria Smirnova to find out more.

According to the World Silver Survey 2019, the silver market looks “promising” in 2019 as the supply and demand picture is expected to remain relatively stable, with demand hitting a three-year high in 2018.

Sprott Physical Silver Trust (NYSE ARCA: PSLV) is a proud sponsor of the 2019 World Silver Survey.

If Alan Greenspan and Stanley Fischer can talk about gold as a policy tool, why can't Trump's nominees?....There is nothing wrong with talking about gold. We should follow it more closely not less.

After much late-March huffing and puffing in COMEX markets to achieve a month-end close for spot gold below $1,300, trading in physical gold markets proved especially robust during the first week of April.  To us, this suggests gold’s sub-$1,300 spot price is destined to be short lived.

Trading in gold markets during the week of 3/25/19 seemed heavily influenced by calendar-related items. 

President Trump and White House advisor Larry Kudlow are baiting Chairman Powell to cut interest rates — but Powell himself said last year that he would listen to an inverted yield curve. Don Luskin breaks down the recent changes to the 10-year yield curve and suggests a way for Powell to independently react.

This past week witnessed an unusually rich sequence of gold supportive events.  Indeed, four successive developments came so fast and furious that we expect strong performance in the gold complex in coming weeks as investors have a bit more time to process the significance of recent news flow. 

We believe that gold equities are poised for a span of significant nominal and relative performance. A new wave of mergers and acquisitions (M&A) is likely to provide a strong catalyst for gold miners in 2019.

CEO John Ciampaglia with Silver News: "We see interest in silver rebounding....and we are bullish about silver going forward. When gold starts to move, it’s not uncharacteristic for silver to move faster at a multiple of two times or more." 

TrendMacro's proprietary quantitative presidential election model predicts that Trump will be re-elected by a margin of 294 electoral college votes, assuming economic conditions are the same in November 2020 as they are today. (TrendMacro is apolitical and non-partisan.)

Peter Grosskopf, Sprott CEO, joins BNN Bloomberg and shares his insights on growing interest and investment in gold bullion. Grosskopf opines on the state of the precious metals industry and why he believes dynamics support more M&A activity. 

Shree Kargutkar, Portfolio Manager, Sprott Asset Management, joins BNN Bloomberg to weigh in on the potential Barrick-Newmont merger, which he views as a "merger of equals" between the Canadian and U.S. mining majors. 

Given the seminal nature of catalysts now in play for precious metals, we felt the timing appropriate for a comprehensive review of factors driving the gold price. In this report, we have compiled our Top 10 List of fundamentals supporting a portfolio allocation to gold in 2019. 

Get our positive outlook on gold and gold equities. Watch/listen to this webcast replay featuring Ed Coyne, EVP at Sprott Asset Management and special guest John Hathaway, Senior Portfolio Manager at Tocqueville Asset Management.

The reports of gold’s death at the hands of cryptocurrencies seems to have been greatly exaggerated. We’ve warned investors about the instability of the cryptocurrency market and the false equivalency with gold over the past two years. New data validates our concerns.

Shree Kargutkar, Portfolio Manager, Sprott Asset Management, joins BNN Bloomberg to talk about increased M&A activity in the gold sector, and weighs in on the Barrick-Randgold and Newmont-Goldcorp deals.

Financial Journalist Liz Claman interviews Ed Coyne, EVP National Sales, on his 2019 outlook for gold bullion and gold equities. 

Trend Macro’s Don Luskin anticipates no Fed rate increase on Wednesday, 1/30/19, and explains that a WSJ report, suspected of being "planted," sets up Fed Chair Powell to sound both dovish and smart about the Fed's balance sheet — a way to redeem himself from the humiliating the December FOMC. 

We believe that gold bullion and gold mining equities may be poised for a multi-year uptrend. Gold bullion beat U.S. equities for the month of December, the fourth quarter, and the full calendar year of 2018. We suggested throughout 2018 that the catalyst for gold’s next important rally would be growing recognition that the Fed’s current tightening cycle was reaching a conclusion.

Palladium has been a standout performer, more than doubling in price in three years 2016 to 2018. YTD the white-hot metal is up more than 10% as of January 16, 2019. Palladium’s rise is best understood by analyzing its unique supply-demand dynamics. Russia and South Africa account for nearly 80% of the world's production, and a chronic supply deficit keeps pushing prices higher. 

Palladium is a key component for ICE autocatalysts. While the escalating U.S.-China trade war hurt many commodities in 2018, palladium continued to rise. Spot palladium gained 18.6% in 2018 and has climbed 124% since the beginning of 2016.