Advisors and investors of all kinds are keeping a close eye on how the Fed’s rate maneuvers shift the market, and that certainly includes gold bugs.
Gold has historically performed well when interest rates are lowered. This is in part due to how rate cuts tend to create a less favorable environment for fixed income strategies, historically increasing demand for safe-haven assets.
As Paul Wong, CFA, Market Strategist at Sprott Asset Management, recently noted, spot gold closed November at $4,239.43 per ounce, the highest monthly close ever for the precious metal.
Looking ahead, the outlook for the Fed’s 2026 rate regimen remains relatively uncertain. However, the U.S. economy may likewise face significant uncertainty, which likely supports both rate cuts and increased gold exposure.
Two Strategies For Fostering Gold Access
Investors and advisors looking to expand their exposure to gold have plenty of strategies to choose from. This includes the Sprott Physical Gold Trust (PHYS).
PHYS gives advisors and investors an accessible means to add gold bullion exposure to their portfolio.
Alternatively, one could opt for a more diversified take on gold exposure through the Sprott Physical Gold and Silver Trust (CEF). Unlike PHYS, CEF invests not only in gold bullion but also in silver bullion.
For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.
The Sprott Physical Gold Trust and the Sprott Physical Gold and Silver Trust are generally exposed to multiple risks that have been both identified and described in each trust’s prospectus. Please refer to the prospectus for a description of these risks. This material must be preceded or accompanied by a prospectus. For an additional copy of each prospectus please visit https://sprott.com/media/1bhoasnr/phys-prospectus-en.pdf and https://sprott.com/media/1nfpxlpx/cef-prospectus.pdf.
Past performance is no guarantee of future results. One cannot invest directly in an index.
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 Products (ETFs): SETM, LITP, URNM, URN, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL
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.
