ROCKLINC Investment Partners Inc. on Sprott Inc.
Thesis
ROCKLINC expects structural investor demand for gold, precious metals and critical materials to remain supported by fiscal debt burdens and monetary debasement. Sprott offers exposure to that trend through its physical trusts and related investment products rather than mine ownership. Although assets under management had been pressured by earlier market-value declines, the quarter’s gold recovery helped preserve the longer-term demand case. ROCKLINC believes gold can appreciate substantially over the next three to five years.
“structural demand for precious metals and critical materials exposure remained intact amid the Q3 recovery in gold prices”
Key risks
- Market-value declines in physical trusts and related funds have already pressured assets under management.
- Gold prices are volatile and faced headwinds from higher bond yields and a stronger dollar.
- Changes in investor demand for precious-metal vehicles may affect fee-generating assets.