Two Gold Drivers in 2026

The ongoing debasement trade and liquidity stress are two drivers for gold in 2026, according to a recent Sprott Precious Metals Report. For investors fearing they may have missed out on the gold rally, these drivers could prove otherwise.

Dubbed the “debasement trade” in 2025, investors were fleeing from fiat currencies and into hard assets like gold as market uncertainty persisted for much of the year. These same dynamics could carry over this year, resulting in more tailwinds for gold.

“Until policymakers globally decide to address the rampant expansion of debt and deficits without resorting to financial repression policies, the debasement trade will likely remain a persistent feature, limiting the time and scope of corrections for gold and precious metals,” said Sprott market strategist Paul Wong in the report.

Additionally, Wong also made light of rising stress in short-term funding markets. This is especially the case when it comes to the “repo market” in which institutions raise short-term cash against Treasury collateral. In turn, this is forcing the Fed to rely on liquidity support, which creates an environment that’s conducive for gold strength.

“Gold thrives in times of fiscal dominance and liquidity expansion,” Wong added further, noting that “structural deficits, reserve scarcity and eroding confidence in fiat systems underpin demand for neutral reserve assets. Central banks are already replacing Treasuries with gold in their foreign exchange reserves, a trend likely to accelerate.”

Investors seeking gold exposure have various options to consider.

Two Golden Opportunities

Sprott Investments offer two ideal opportunities for gold exposure: the Sprott Physical Gold Trust (PHYS) and the Sprott Gold Miners ETF (SGDM). PHYS offers pure-play gold exposure while SGDM takes an indirect route via gold miners.

It gives investors gold exposure via fund shares, but it also adds a layer of flexibility. PHYS allows investors the option to convert their fund shares into physical bullion if they’re opting for a more tangible investment experience. Investing in PHYS avoids  the logistical challenges that come with storing gold.

Gold miners offer an alternative pathway to exposure. In the case of SGDM, it capitalizes on gold mining equities by tracking the Solactive Gold Miners Custom Factors Index. The fund primarily targets large-cap gold mining companies that poised to benefit when gold prices rise. Supportive services like mining tend to move higher whenever gold prices strengthen. Additionally, by investing in a sector ETF focused on gold mining, investors eschew the overconcentration risk associated with investing in shares of single companies—all with the inherent benefits of tax efficiency, low costs, and trading flexibility of ETFs.

For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.

Disclosures

An investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below.

Past performance is no guarantee of future results.  One cannot invest directly in an index.

Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance.

Sprott Asset Management USA, Inc. is the Investment Adviser to the ETFs. ALPS Distributors, Inc. is the Distributor for the ETFs and is a registered broker-dealer and FINRA Member. ALPS Distributors, Inc. is not affiliated with Sprott Asset Management USA, Inc. or VettaFi.

Exchange Traded Funds (ETFs):  SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM and SGDJ
Physical Bullion Funds: PHYS, PSLV, CEF, and SPPP.

Gold and precious metals are referred to with terms of art like store of value, safe haven and safe asset. These terms should not be construed to guarantee any form of investment safety. While “safe” assets like gold, Treasuries, money market funds and cash generally do not carry a high risk of loss relative to other asset classes, any asset may lose value, which may involve the complete loss of invested principal.

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