The Sprott Active Gold & Silver Miners ETF is an actively managed ETF that invests in gold and silver-focused companies involved in exploring, developing and mining, or royalty and streaming companies engaged in the financing of gold and silver assets.
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NewsTranscript
00:00Silver emerged as a standout performer in 2024, delivering an impressive 21.46% return and breaking free from its multi-year consolidation pattern.
00:12Despite challenges for elevated real interest rates and a robust US dollar, the precious metal maintained strong correlation with gold, reaffirming its status as a monetary asset.
00:24This resilience was further reflected in strengthening investor sentiment, evidenced by positive shifts in both CFTC data and ETF positioning.
00:34While recent headlines have focused on potential demand headwinds, particularly concerning weakness in the Chinese market and possible solar panel tariffs,
00:44the more critical factor for 2025 may be emerging from the supply side. Approximately 72% of global silver production comes as a byproduct of lead-zinc and other metal mining operations.
00:58With forecasts suggesting a potential slowdown in Chinese lead and zinc demand, this could trigger a significant reduction in silver supply, potentially catalyzing upward price movement.
01:11The demand outlook for silver remains robust, supported by several key drivers. We anticipate the shift in global monetary policy, ongoing economic recovery, and expanding industrial applications, particularly in solar energy and electrification, to fuel demand growth.
01:29This reassuring of solar panel production and continuing technological advancements in solar energy efficiency are likely to counterbalance any negative impacts for potential Chinese solar panel tariffs.
01:42Solar energy's remarkable cost competitiveness stands as a particularly bright spot for silver demand. In many places, current solar energy costs have dropped significantly below traditional energy sources like coal and natural gas.
01:56When combined with advanced battery storage solutions that address intermittency concerns, solar energy's value proposition becomes even more compelling, suggesting sustained demand for silver in photovoltaic applications.
02:10From a technical perspective, silver's breakthrough from its multi-year consolidation range in 2024 signals the potential for further price appreciation. This technical strength, combined with favorable supply-demand dynamics, positions the metal for potential gains in 2025.
02:27In our view, metal's persistent correlation with gold prices adds another layer of support, particularly in an environment where monetary and geopolitical uncertainties remain elevated.
02:39Looking ahead, silver's dual role as both an industrial metal and a monetary asset may provide a compelling value proposition for investors. With supply constraints potentially emerging and demand drivers remaining strong, the outlook for silver in 2025 appears increasingly instructive.