Investment experts from Sprott are projecting substantial growth potential for real assets in 2025, driven by global decarbonization efforts and increasing electricity demand. The analysis suggests critical materials like uranium, copper, gold, and silver will play pivotal roles in technological advancement and economic resilience.
Global electricity demand is expected to surge 169% between 2020 and 2050, creating unprecedented opportunities in critical materials. Nuclear power is gaining international momentum, with China planning 440 nuclear reactors and over 30 nations agreeing to triple nuclear energy capacity by 2050.
Copper emerges as a particularly strategic asset, with constrained supply and no viable substitutes. The metal could be entering a supercycle, characterized by sustained demand exceeding commodity production capabilities. New copper mine development takes approximately 16.5 years from discovery to production, potentially creating significant market value.
Precious metals like gold and silver are positioned as protection assets amid macroeconomic uncertainty. Gold's low correlation with other asset classes makes it an attractive diversification tool, while silver's industrial applications in solar panels and electric vehicles are driving increased demand.
Geopolitical tensions and evolving economic policies, such as potential changes in electric vehicle support under a potential Trump administration, could further influence these real asset markets. Investors may find opportunities by strategically positioning themselves in these critical material sectors.
