Why Gold—and Other Physical Commodities—Deserve a Place in Your Core Portfolio

In an increasingly volatile economic landscape, investors are rediscovering the timeless value of physical commodities—with gold leading the charge. Sprott’s Edward C. Coyne makes a compelling case for treating commodities not as optional hedges but as fundamental portfolio anchors—a strategy that savvy investors should consider seriously.

The Case for Physical Commodities

1. Physical First, Always

Fair warning: when exploring commodities, the first and most reliable step is the physical market—think gold, silver, copper, uranium. These assets offer tangible, defensible value when everything else is unstable. As Coyne notes, “the market is physical first”.

2. Gold: The Legendary Diversifier

Gold isn’t just familiar—it has a track record of zigging when everything else zags. It's a “wonderful diversifier,” trusted through crisis and calm alike Sprott+1.

3. Opportunity Lies in the Miners (With Caution)

If you’re seeking upside beyond the tranquil world of bullion, equity exposure through mining stocks brings more potential—but also more risk. Coyne reminds investors that miners are companies: that means earnings volatility, political risk, and market swings. It’s a trade-off—tactical, opportunistic returns versus physical stability. His advice: start with physical bullion, then consider miners for opportunistic exposure.

Why Now Makes Sense

4. Inflation & Geopolitical Tailwinds

Global tensions and central bank behavior in 2025 are injecting fresh momentum into gold and critical materials. Gold and silver have surged over 25%, while mining stocks have shot up more than 50%, yet still appear undervalued amid persistent inflation and geopolitical uncertainty.

5. Critical Materials Dominate the Commodity Cycle

Beyond traditional industrial metals tied to China's economic activity, critical materials—like uranium, copper, and silver—are fast becoming the new commodity leaders. These metals are central to energy transition infrastructure, and their prices are outperforming legacy sectors.

6. Security, Strategy, and Structural Demand

Policies around energy security and industrial autonomy are reshaping global strategies. Copper is becoming a national security asset, while uranium is riding a renewed nuclear energy wave—all supported by rising demand and government backing.

Practical Takeaways

• Keep gold and silver at your core. Their role as stabilizers makes them invaluable when markets turn.

• Use miners for opportunistic positioning—but only after allocating to bullion.

• Diversify into critical materials if you're aligned with the future of energy, infrastructure, and supply chain resilience.

• Be mindful of risks: Commodity exposure brings price volatility, policy headwinds, and liquidity constraints.

For readers on IncomeFromGold.com, this means:

• Strengthening core allocation with physical gold,

• Using mining equities strategically for upside,

• Considering next-generation metals—copper, uranium—to build resilience and growth potential.