Sprott Precious Metals Watch

Paul Wong, CFA, Market Strategist: Gold continues its rally as fading confidence in U.S. fiscal policy and the U.S. dollar drives demand for real assets. As we publish, silver is breaking out above $35, supported by structural supply deficits, renewed investor interest and mounting macroeconomic pressures.

Silver prices have risen 25% over the past year, currently sitting at around $33 per ounce, with analysts predicting further gains up to $40 per ounce by year-end. Experts note that silver’s performance is closely tied to economic conditions, with potential Federal Reserve rate cuts likely to boost its appeal as an investment. While silver can serve as a hedge against market volatility, its historical price fluctuations make it a riskier asset compared to gold.

Silver prices have risen 25% over the past year, currently sitting at around $33 per ounce, with analysts predicting further gains up to $40 per ounce by year-end. Experts note that silver’s performance is closely tied to economic conditions, with potential Federal Reserve rate cuts likely to boost its appeal as an investment. While silver can serve as a hedge against market volatility, its historical price fluctuations make it a riskier asset compared to gold.

Paul Wong, CFA, Market Strategist: Gold is gaining prominence as a reserve asset due to a weak U.S. dollar and declining U.S. financials, reaching record highs while equities and bonds fell. We believe this positions gold as a potential anchor for a multi-asset reserve system. Given silver’s correlation to gold, we believe its monetary value will reassert itself in time.

Gold prices declined as optimism surrounding upcoming U.S.-China trade talks reduced demand for safe-haven assets. Investors are also closely watching the Federal Reserve's policy meeting, where officials are expected to hold interest rates steady but may signal future rate cuts. Despite geopolitical tensions, including military escalations between India and Pakistan, gold failed to attract strong haven inflows as broader market sentiment remained positive.

China has been steadily increasing its gold reserves for six consecutive months, with the People's Bank of China adding approximately 70,000 troy ounces in April alone. This surge in gold accumulation aligns with broader central bank trends, as nations seek to diversify their holdings amid economic uncertainties. Analysts suggest that China's growing gold stockpile reflects efforts to reduce reliance on the U.S. dollar and strengthen financial stability.

Gold has historically served as a hedge during financial instability, often outperforming the broader stock market during crises, though it underperforms in the very long run. Silver tends to follow gold's rally after a lag, and while it shares gold’s haven appeal, its industrial applications make it more economically sensitive. Investors monitoring the gold-to-silver price ratio note that silver has historically surged after extreme gold-to-silver imbalances, hinting at potential future opportunities for silver if economic conditions improve.

John Ciampaglia, Sprott Asset Management CEO, joins ‘Fast Money’ to talk gold hitting another record high.

Paul Wong, CFA, Market Strategist: Gold's record-breaking rally in Q1 2025 reflects mounting investor anxiety over stagflation, policy volatility and a fraying global economic order. U.S. tariffs and policy unpredictability have elevated the risk of stagflation, fueling demand for gold as the lone liquid safe-haven asset. We also believe silver is potentially poised to break out.

Gold miners' equity funds are experiencing renewed investor interest in March, as record-high gold prices above $3,000 an ounce improve miners' profit outlook and cash flow potential. Despite cost pressures and previous investor preference for physical gold funds, firms like Newmont and Barrick Gold have seen significant stock price rebounds, and gold miner funds recorded their first net inflows in six months.

Funds that invest in gold miners are set to attract their largest net monthly inflows in more than a year in March, as record-high gold prices improve firms’ profit outlooks and boost cash flow.

Although gold prices also rose last year, miners still struggled to offset inflation-driven spikes in labour and fuel costs while facing regulatory hurdles such as tax disputes in Mali and project delays in Canada.

As a result, investors mostly shunned equity funds focused on gold miners, opting instead for traditional gold funds that offered a safe haven during the Russia-Ukraine war and escalating trade tariff concerns after Donald Trump won the US election in early November.

According to LSEG Lipper data, funds investing in physical gold and gold derivatives attracted a net $17.8 billion in 2024, the highest in five years, while funds investing in gold miners lost a net $4.6 billion, the most in a decade.

Gold has surged as a safe haven during the ongoing stock market selloff, with prices hitting record highs and exchange-traded funds like SPR Gold Shares (GLD) seeing significant gains. Geopolitical instability, including conflict in the Middle East, and economic uncertainty driven by tariffs and recession fears have further boosted demand for the precious metal. Analysts predict continued momentum, with some projecting gold prices to surpass $3,500 in the coming year as it remains a hedge against macroeconomic and geopolitical volatility.

The Global Precious Metals MMI experienced a significant 7.36% rise month-over-month, reflecting the volatile nature of the precious metals market amid shifting economic conditions and policy changes. Palladium saw considerable price fluctuations due to seasonal demand, output reductions, and new tariffs, while platinum prices held steady despite minor monthly changes and an anticipated supply deficit. Silver and gold prices strengthened, with silver reaching new highs and gold hitting record levels driven by economic policy uncertainty and aggressive central bank purchases.

Barrick Gold Corp. and Newmont Corp. have struggled to meet investor expectations despite high gold prices, partly due to increased costs and production challenges. Investors are now looking to the upcoming earnings season to see if these top producers can improve operational performance and expand margins as gold continues its rally.

Silver's dual role as both a precious and industrial metal helped it achieve significant gains in 2024 despite macroeconomic challenges such as inflation and a strong dollar. Investors are now exploring diversified investment options to capitalize on silver's potential in various applications, including clean technology and healthcare.

John Ciampaglia, CEO of Sprott Asset Management, joins James Connor of Bloor Street Capital to discuss his 2025 outlook for gold. Ciampaglia discusses Sprott's flagship Physical Gold Trust and dives into why gold is a crucial financial asset and portfolio diversified.

Pinch point is the term Sprott’s Maria Smirnova uses to describe the current supply-demand picture for silver in 2025. Maria joins host Ed Coyne to walk us through how silver’s growing demand is coming up against a static supply pipeline.

Paul Wong, CFA, Market Strategist: What forces will shape the markets in critical materials and precious metals in 2025 and beyond? We identify 10 key macro and market themes investors should watch in the coming year.

Gold and silver markets experienced significant volatility due to fears of tariffs under President Trump, but his delay in imposing them has provided some relief. Analysts note that while the market may stabilize, ongoing geopolitical uncertainty will continue to support investment in precious metals.

As the price of gold continues to rise, it appears that we are entering a new gold rush. Who buys it and where they keep it continues to evolve.

Maria Smirnova, Chief Investment Officer: "We believe that silver continues to offer a compelling investment opportunity due to its unique market dynamics. For investors, a diversified portfolio that balances physical assets and mining equities may offer exposure to silver's stability as a store of value and its growth potential as a critical industrial metal."

Analysts predict strong prospects for gold and silver in 2025, driven by rising central bank purchases, persistent supply deficits and economic uncertainty, with gold potentially reaching new highs and silver seeing significant demand due to its industrial uses. While gold is considered a stable hedge against inflation and market downturns, silver’s smaller market size and broader industrial applications make it more volatile but highly responsive to shifts in supply and demand.

We see gold's post-election pullback as a healthy consolidation, affirming our bullish outlook. Post-election market dislocations, historically tied to political outcomes, may present a strategic buying opportunity in precious metals and mining equities. 

Not only have gold prices pushed to $2,800 an ounce, continuing their impressive rally, but they have also managed to hit new all-time highs even as bond yields remain relatively elevated. McIntyre: “If we look at the landscape, whether it's U.S. equities, international equities, or emerging markets, those all have some pretty high valuations. And now look at the risks; there is plenty of uncertainty across the board. Unlike equities, we believe that gold is nowhere near priced to perfection.”

Paul Wong, CFA, Market Strategist: Gold and silver prices surged in Q3 2024, driven by central bank buying and macroeconomic factors. While gold experienced a historic price increase, silver's price was influenced by both its precious metal value and industrial demand. YTD through September 30, gold is up 27.71% and silver has gained 30.95%.

John Hathaway, Senior Portfolio Manager: We believe gold mining equities are poised for growth, as they remain undervalued despite rising gold prices. Western investors have largely ignored gold, but any shift has the potential to push gold prices higher, which will likely benefit miners. In our view, the current market displays the signs of an early-stage bull market.

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 & Mining, 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.

Geologists have known for decades that gold forms in quartz with the help of earthquakes, but now they have worked out exactly how the setting and seismic waves combine to form large gold nuggets.

Ed Coyne is joined by Ronni Stoeferle to discuss gold’s quiet ascent to new all-time highs and how it can contribute to maintaining purchasing power in today’s economy.

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.

Investors are waking up to competition for copper supply as the world electrifies and pivots away from fossil fuels