Sprott Inc. concluded 2025 with record assets under management, driven by strong performance across the metals it tracks and increased investor interest in its exchange-traded funds focused on precious metals, critical materials, and mining companies. Steven Schoffstall, the firm's director of ETF product management, attributed this success to persistent market uncertainties. A lot of times it's that geopolitical uncertainty, economic uncertainty, Schoffstall stated in an interview. We're seeing trade wars and threats of tariffs. All of that bodes well for precious metals traditionally.
Looking ahead to 2026, Schoffstall anticipates the positive trends will continue, with silver highlighted as a metal poised for particular strength. He noted that silver's dual role as both a precious and industrial metal, with nearly 60% of its demand stemming from industrial applications such as artificial intelligence and semiconductors, positions it favorably. A lot of what we saw in 2025 is likely to carry through into 2026, Schoffstall said regarding the broader precious metals sector. The original analysis was published on Benzinga, which provides further disclosures here.
The implications of this outlook are significant for investors and markets. Continued demand for precious metals, fueled by industrial needs and safe-haven buying during periods of instability, suggests these assets may remain a cornerstone of diversified portfolios. The specific mention of silver's industrial applications underscores how technological advancements, particularly in AI and semiconductors, are creating new demand drivers beyond traditional investment motives. This convergence of factors indicates that the precious metals market is evolving, with its performance increasingly tied to both macroeconomic sentiment and sector-specific growth trends.
Schoffstall's comments reflect a broader narrative where assets perceived as stores of value gain appeal during times of economic and geopolitical tension. The reference to trade wars and tariffs points to ongoing global frictions that could disrupt supply chains and currency stability, further bolstering the case for hard assets. For market participants, this perspective emphasizes the importance of monitoring not only monetary policy and inflation data but also industrial demand cycles and geopolitical developments when assessing the trajectory of commodities like gold and silver in the coming year. The firm's success in 2025 demonstrates how investor behavior shifts toward tangible assets during uncertain periods, while the outlook for 2026 suggests this trend may persist as industrial demand for metals like silver continues to grow alongside traditional safe-haven investment flows.
