Sprott Active Gold & Silver Miners ETF

GBUG

Market cap $160M

Is now the time to consider hopping back into silver investing? Sure, the precious metal may tend to be a bit more volatile than gold, but it is certainly offering a compelling value proposition for the months to come.

The global push, particularly in Western nations, towards advanced technology in the defense sector is amplifying the realization that critical supply chains run through China. For defense strategists, this reliance becomes a roadblock on the path to critical mineral independence.

Sprott Active Gold & Silver Miners ETF offers compelling exposure to gold and silver miners amid stagnant metal prices in 2026. Miners' free cash flow is at a 30-year high, supporting GBUG's attractive forward EV/EBITDA valuation of 6.2x versus a historical 8.8x. GBUG's active management and diversified holdings mitigate dispersion risk among miners, with strong momentum and Quant buy signals reinforcing the thesis.

While gold has proved to be a hot commodity for the last few months, some naysayers have looked at March's short-term volatility as a reason to stay away from the precious metal for now.

The Sprott Active Gold & Silver Miners ETF offers actively managed exposure to undervalued gold and silver miners, targeting long-term capital appreciation. GBUG's diversified portfolio, low single-stock concentration, and 1.45% yield provide risk mitigation and outperform both GDX and the S&P 500 since inception. Despite recent sector outperformance, GBUG holdings trade at attractive valuations, with forward P/E ratios generally below the S&P 500, suggesting further upside as gold prices rise.

In recent months, there has been a lot of discussion about the importance of amplifying the domestic production and supply chains for rare earths in the United States. Given that China maintains a significant hold over the global market, the U.S. looking to increase its own rare earths presence makes a good deal of sense.

Key Takeaways While energy investments of all kinds have struggled amid conflict in the Middle East, uranium might offer a compelling long-term opportunity. Sprott Asset Management CEO John Ciampaglia noted that uranium's fundamentals remain sound, and that it remains far harder to substitute or replace than other metals investors tend to allocate towards.

Silver is entering its sixth consecutive year of a structural supply deficit, as global production fails to keep pace with the massive demand required for the clean energy transition and AI infrastructure.

Despite falling below $5,000 recently, it could be an opportune time to strike and purchase the dip in gold prices. Fundamental demand drivers could continue to push the precious metal higher through the rest of the year.

Gold and silver may have begun the new year on a positive note, but now advisors and investors are questioning which direction the metals will take next.  Last Friday, prices for gold and silver alike tumbled in response to President Trump nominating Kevin Warsh to be the next chair of the Federal Reserve.