Ed Coyne, Senior Managing Partner for Sprott Asset Management, joined Julie Cooling, Founder and CEO of RIA Channel, to discuss the role of precious metals and energy commodities in client portfolios.
Sprott has managed precious metals investments for over 40 years, offering access to physical gold and silver as well as exposure to gold and silver mining stocks. Given the global economy’s need for energy transition, Sprott now offers exposure to copper and uranium. With global electricity demand increasing due to its use for artificial intelligence and data centers, the demand for copper is increasing. Uranium supports the clean and sustainable generation of electricity. Amazon and Microsoft are purchasing properties to build and expand data centers near nuclear power plants to access sustainable electricity.
Sprott offers pure-play investments in both uranium and copper, while other asset managers will be more broadly diversified across the energy transition theme. Sprott’s offerings include exposure to the physical commodity and equities that earn at least half of their revenue from that specific commodity. The funds are not market cap weighted but have allocations tilted toward stocks with higher quality, greater liquidity, and more focus on the specific commodity.
Advisors typically hold physical precious metals as part of their risk-off allocation, seeking to offset risks held elsewhere in the portfolio. Precious metals equities can be held in a risk-on allocation, as factors impacting the equity market influence the returns to these stocks. Over long periods of time, precious metals equities are expected to outperform physical holdings in precious metals. An allocation of 5% to 10% across physical precious metals, copper, and uranium, can add substantial diversification to client portfolios. Opportunistic investors may have an allocation as large as 15% when combining exposures to both equities and physicals.
WEBCAST – A Closer Look at Gold and Silver, Metals and Miners
Gold and silver provide a powerful blend of potential wealth preservation, inflation mitigation and portfolio diversification. During times of geopolitical uncertainty and market volatility, investors have turned to gold and silver as safe-haven assets. Unlike stocks or bonds, gold and silver are tangible, resilient to corporate failures and sovereign defaults, and may offer security and liquidity in uncertain economic climates.
Join us for an exclusive webcast that will cover:
- Insights into the key technical drivers influencing gold, silver and precious metals mining equities.
- The ongoing bull market has seen gold bullion surge and gold mining stocks deliver impressive gains.
- How gold mining equities have historically outperformed gold prices, offering attractive opportunities for investors.
- How silver’s unique role as both a precious and industrial metal are fueling its rise.
- Why silver is underpriced relative to gold, and what this means for potential silver price gains.
- Options for investors looking to enter the space.
Accepted for 1 CFP® / IWI / CFA CE Credit
Resources:
Education Center: Silver, Gold, Copper, and Uranium