Sprott Inc. (NYSE: SII) concluded 2025 with assets under management at record levels, driven by strong performance across all metals the company tracks and significant new investor interest in its exchange-traded funds focused on precious metals, critical materials, and mining companies. Steven Schoffstall, Director of ETF Product Management at Sprott, attributed this momentum to persistent geopolitical and economic uncertainties that traditionally benefit precious metals.
"A lot of times it's that geopolitical uncertainty, economic uncertainty," Schoffstall stated in an interview with Benzinga. "We're seeing trade wars and threats of tariffs. All of that bodes well for precious metals traditionally." This environment has prompted investors to seek assets perceived as safe havens during times of global instability, contributing to the record AUM figures.
Looking ahead to 2026, Schoffstall anticipates the trends observed in 2025 will persist. He specifically highlighted silver as a metal poised for continued strength due to its dual role as both a precious metal and a critical industrial component. Nearly 60% of silver demand stems from industrial applications, including sectors like artificial intelligence and semiconductor manufacturing, which are experiencing rapid growth. "A lot of what we saw in 2025 is likely to carry through into 2026," Schoffstall said regarding the precious metals sector overall.
The sustained interest in precious metals ETFs reflects broader market sentiments and has significant implications for investors and the financial industry. For individual investors, it underscores the ongoing relevance of metals as portfolio diversifiers amid fluctuating economic conditions. For the industry, Sprott's success signals robust demand for specialized investment vehicles that provide exposure to hard assets. The performance of metals like silver also highlights the interconnectedness of commodity markets with technological advancement, as industrial demand from sectors like AI becomes an increasingly important price driver alongside traditional investment demand.
The original analysis featuring Schoffstall's comments was published on Benzinga, which provides further context and disclosures regarding the discussion. The convergence of investment and industrial demand factors suggests the precious metals market will remain a key area of focus for market participants navigating the uncertainties projected for the coming year.
