Precious metals rally on supply deficits: Sprott’s ETF director Schoffstall

Gold Market Analysis - Gold is on pace for its best year since the 1970s, reminiscent of the years after abandoning the gold standard [1] - Central banks are moving out of dollar assets and into gold, hedging against economic uncertainty, trade wars, and geopolitical tensions [2] - Investors are starting to catch up to the gold trade, with flows entering into physical gold [3] - Geopolitical uncertainty and potential interest rate declines are expected to persist through 2026, driving gold prices higher [5] - Western investors have recently started moving into physical gold, suggesting further potential for growth [6] Silver Market Analysis - Silver is viewed as a complement to gold, typically rallying after gold's initial move [7] - Silver is increasingly recognized as an industrial metal, with growing industrial applications [7][8] - Investors are starting to allocate to silver, potentially due to gold's strong performance [9] - Silver miners offer more leverage than holding the physical commodity, but also carry execution risk [9][10] - Many silver miners have all-in sustaining costs below $15 per ounce [11] - Silver is often mined as a byproduct, making pure-play silver miners an area of investor focus [12] Copper Market Analysis - Copper is up approximately 35-37% year-to-date [13] - The copper market is evolving beyond its traditional ties to global economic health [14] - The energy transition, with nearly $2 trillion of investment last year, is providing underlying support for copper demand [14] - Increased electrification, artificial intelligence, and data center buildout are adding to copper demand [15] - Constrained supply and disruptions in the copper industry are likely to push the market into a deficit this year and in the medium to long term [16]