Why Declining Interest Rates Could Make Gold a Smart Investment Choice

Investing in gold during a declining interest rate environment can be a strategic move for several reasons:

Hedge Against Inflation

Lower interest rates may sometimes lead to higher inflation. Gold often acts as a safe haven, preserving purchasing power when currencies weaken.

Lower Opportunity Cost

When interest rates fall, the opportunity cost of holding non-yielding assets like gold decreases. Some investors might prefer gold over bonds or savings accounts that yield lower returns.

Increased Demand for Safe Havens

In uncertain economic times, investors often flock to gold as a safe haven, driving up its price.

Diversification

Gold can diversify an investment portfolio, potentially reducing overall risk when other assets are underperforming.

Global Economic Concerns

Declining rates often signal economic slowdowns. Gold may provide stability during turbulent times.

Central Bank Policies

Many central banks buy gold as a reserve asset. Increased purchases can elevate prices, especially in a declining rate environment.

Limited Supply

Gold is a finite resource. If demand increases while supply remains constant, prices are likely to rise.

These factors make gold an appealing option for some investors when interest rates are declining, offering potential stability and growth in a challenging economic landscape.

NPP226

(Series F)

Ninepoint Gold Bullion Fund

Mutual Funds Bullion

$28.18 $0.23 (0.83%)

As at 11/20/2024

Growth of $10,000 Invested as at 10/31/2024

Performance as at 10/31/2024

1 Year
37.64%

3 Year
18.99%

5 Year
12.90%

10 Year
10.18%

Incept.¹
7.08%

¹ Inception Date 3/18/2009

Go To Fund

All returns and fund details are a) based on Series F shares; b) net of fees; c) annualized if period is greater than one year; d) as at 10/31/2024. Top ten holdings, sector allocation and geographic allocation as at 10/31/2024. Top ten holdings based on % of net asset value. Sector allocation based on % of net asset value. Geographic allocation based on % of net asset value and excludes cash. Numbers may not add up due to rounding. Cash and cash equivalents include non-portfolio assets and/or liabilities.

The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the investment fund or returns on investment in the investment fund.

The Fund is generally exposed to the following risks: Commodity risk; Concentration risk; Credit risk; Currency risk; Cybersecurity risk; Derivatives risk; Inflation risk; Interest rate risk; Market risk; Series risk; Sub-adviser risk; Tax risk; Uninsured losses risk.

Ninepoint Partners LP is the investment manager to a number of funds (collectively, the “Funds”). Commissions, trailing commissions, management fees, performance fees (if any), and other expenses all may be associated with investing in the Funds. Please read the prospectus carefully before investing. The indicated rates of return for series F units of the Funds for the period ended 10/31/2024 are based on the historical annual compounded total returns including changes in unit value and reinvestment of all distributions or dividends and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. This communication does not constitute an offer to sell or solicitation to purchase securities of the Funds.

The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

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The opinions, estimates and projections (“information”) contained within this report are solely those of Ninepoint Partners LP (“Ninepoint”) and are subject to change without notice. Ninepoint makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Ninepoint assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Ninepoint is not under any obligation to update or keep current the information contained herein. The information should not be regarded by recipients as a substitute for the exercise of their own judgment. Please contact your own personal advisor on your particular circumstances.

This document is for information purposes only and should not be relied upon as investment advice. We strongly recommend that you consult your investment professional for a comprehensive review of your personal ﬁnancial situation before undertaking any investment strategy. Information herein is subject to change without notice and Ninepoint is not responsible for any inaccuracies or to update this information.

Views expressed regarding a particular company, security, industry or market sector should not be considered an indication of trading intent of any investment funds managed by Ninepoint Partners LP. These views are not to be considered as investment advice nor should they be considered a recommendation to buy or sell.

The information contained herein does not constitute an offer or solicitation by anyone in the United States or in any other jurisdiction in which such an offer or solicitation is not authorized or to any person to whom it is unlawful to make such an offer or solicitation. Prospective investors who are not resident in Canada should contact their ﬁnancial advisor to determine whether securities of the Funds may be lawfully sold in their jurisdiction.