Gold's Midyear Check-In: Debasement & Banks Remain Key

With countries and central banks seeking to buy up metals for the years to come, crafty advisors and investors have been able to capitalize on these purchases with strategic exposure. Of course, this attention has also extended to gold, which has seen its price both rise and fall in the first half of the year.Key Takeaways: Gold’s price has rocked back and forth this year, but Sprott CFA Paul Wong, highlighted several factors that will benefit the precious metal in the months to come.  These factors include the ongoing debasement trade, monetary instability, and an erosion in the petrodollar system. Both the Sprott Gold Miners ETF (SGDM B-) and the Sprott Junior Gold Miners ETF (SGDJ C+) offer clear, focused access to the gold mining industry, which stands to benefit from these favorable trends. With that being said, what should advisors and investors expect from gold in the second act of 2026? In a recent webcast, Paul Wong, CFA, managing partner and market strategist at Sprott, offered his outlook on where gold goes from here.  Looking from a holistic perspective, Wong highlighted a variety of factors that can work in gold’s favor in the long term. Two key factors are increased monetary instability and the debasement trade. Meanwhile, central banks are still buying up gold in the near term. Furthermore, Wong noted that a decline in the petrodollar system would also threaten the U.S. dollar’s dominance and heighten gold’s use as a neutral store of value.  See more: Why Central Banks Are Trading Dollars for Gold “Long-term outlook, we still think we’re in a structural market,” Wong added. “Essentially, the central bank buying that began with the Russia-Ukraine war is still ongoing. China is still buying. The debasement trade is, I would say, more alive than ever.”SGDM and SGDJ: 2 Ways to Try GoldFor those looking to bet on gold for the second half of 2026, the Sprott Gold Miners ETF (SGDM B-) is a viable option. SGDM invests in a diverse mix of gold mining companies listed across the U.S. and Canada. See more: The Case for Gold Miners: Why Supply Scarcity is Key Alternatively, one could consider the Sprott Junior Gold Miners ETF (SGDJ C+). SGDJ also focuses on gold miners, but aims for smaller companies with a market cap between $200 million and $2 billion. This approach could pay off for investors who are highly bullish on gold’s long-term growth potential heading into the second half of 2026. See more: Storage Shock: Why Lithium Miner ETFs Warrant a Closer Look Regardless of which fund one chooses, adding gold exposure to a portfolio offers a distinct set of benefits. This includes inflation protection and diversification — two key advantages that many advisors are looking to capitalize on in the coming months. 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, URN, COPP, COPJ, NIKL, SGDM, SGDJ, SLVR, GBUG, METL 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.