The Case for Gold as an 'All-Weather' Investment

Long viewed as an emergency brake for macroeconomic panic, gold is starting to prove itself as much more than a crisis asset.Key Takeaways: Gold is often viewed as a defensive investment amid uncertainty, but Sprott’s John Hathaway, MBA, CFA, argued it has merits as an “all-weather strategy.” Hathaway also noted that now may be a good time for investors to consider allocating assets towards gold equities, regardless of whether gold’s price moves up. Advisors and investors can gain access to the gold mining industry through ETFs like the Sprott Gold Miners ETF (SGDM) and the Sprott Junior Gold Miners ETF (SGDJ). During the 2026 Precious Metals Summit in Beaver Creek, John Hathaway, MBA, CFA, managing partner at Sprott and senior portfolio manager at Sprott Asset Management USA, sat down with Kitco Mining’s Paul Harris to discuss this very topic. Hathaway looked at the gold equity outlook, how gold has performed amid different cycles, and more. “Gold is an all-weather strategy not recognized as such,” Hathaway explained. He noted that while it’s usually thought of as a safe haven, gold can also simply be used to help bolster portfolio diversification. Hathaway also pointed out that since 2000, gold has actually outperformed the S&P 500, with dividends reinvested. See More: Nuclear Energy Ambitions Opens Up Growth for Uranium MinersA New Opportunity for Gold EquitiesFor those considering gold equities, when would be the best time to do so? According to Hathaway, the outlook for gold equities is rather bright, regardless of whether the price of the metal moves up. He attributed this to miners having strong operating leverage, potential M&A momentum, and more. “The day has come for the gold stocks to start to perform,” Hathaway added. “That’s without any increase in the gold price. If the gold price goes up further, I think there’s a lot of potential. You can almost throw darts. We would never do that, but you almost could. First, you want a good mix of solid big-cap producers; then look for growth stories and takeout candidates. We do this every day. There’s a lot to be done.” See More: High Beta, Short Supply: The Drivers of Silver’s New RallySGDM and SGDJ: 2 Ways to Tackle Gold Miner ExposureAdvisors and investors looking to build access to the gold mining industry can do so through the Sprott Gold Miners ETF (SGDM). SGDM leverages the flexibility of the ETF wrapper to invest in a variety of gold mining companies on U.S. and Canadian exchanges. The fund’s index uses a rules-based approach to target companies with strong revenue growth and free cash flow yield. Alternatively, one could tap into the opportunity set within smaller gold miners with the Sprott Junior Gold Miners ETF (SGDJ). SGDJ invests in small-cap gold miners, using an index that seeks out companies with compelling revenue growth and price momentum. For more news, information, and analysis, visit the Gold/Silver/Critical Minerals Content Hub.DisclosuresAn investor should consider the investment objectives, risks, charges, and expenses carefully before investing. To obtain a Prospectus, which contains this and other information, contact your financial professional or call 888.622.1813. Read the Prospectus carefully before investing, which can also be found by clicking one of the links below. Past performance is no guarantee of future results. One cannot invest directly in an index. Funds that emphasize investments in small/mid-cap companies will generally experience greater price volatility. Diversification does not eliminate the risk of investment losses. ETFs are considered to have continuous liquidity because they allow an individual to trade throughout the day. A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses, affect the Fund’s performance. 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 Funds (ETFs): SETM, LITP, URNM, URNJ, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL, and REXC 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.