Edward Coyne, Senior Managing Director, Global Sales, Sprott Inc. met with Julie Cooling, Founder & CEO, RIA Channel to discuss allocation strategies for gold and other physical assets.
Historically, gold has offered investors an efficient, low-cost way to hedge their portfolio against market risk. “When the market shows stress and when the market shows uncertainty, gold has repeatedly done its job over multiple market cycles,” says Coyne. As today’s volatile market grapples with sky high valuations, a tightening monetary policy, and geopolitical uncertainly, many look to gold as a flight to safety. Coyne encourages advisors to think about gold as a long-term compliment, not a replacement, of their core allocation.
Sprott’s Physical Gold Trust (PHYS) offers investors liquid access to the physical gold market. On the gold equities side, the Sprott Gold Miners ETF (SGDM) seeks to provide exposure to the largest gold producers and the Sprott Junior Gold Miners ETF (SGDJ) aims identify small cap gold producers with the strongest revenue and price momentum.
On the commodities side, Coyne points to opportunity in uranium and “ESG Metals” like platinum and palladium. The rising need for clean and efficient energy sources, global de-carbonization goals, and a pro-longed supply and demand imbalance has created a bull market for uranium, the heavy metal element behind nuclear energy. The Sprott Physical Uranium Trust, an exchange-traded product launched in July 2021, uniquely delivers a cost-effective, liquid, and secure way to invest in uranium. Palladium, widely used for catalytic converters designed to control emissions, also stands to benefit from increased demand. The Sprott Physical Platinum and Palladium Trust (SPPP) offers efficient, physically-backed exposures to these metals.
Sprott Asset Management, roughly $18.6B in AUM, is a global leader in precious metals and real assets investments. Sprott manages a number of investment solutions including exchange traded physical bullion and commodity trusts, gold mining equity ETFs, mutual funds and lending solutions.
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Private Markets Playbook: Real Assets
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