December 31, 2025

Commentary

Ninepoint Silver Bullion Fund

Investment Team

Sprott Asset Management

Sprott Asset Management

Sprott Asset Management LP is an alternative asset manager and a global leader in precious metal and real asset investments. Through its subsidiaries in Canada, the US and Asia, the Corporation is dedicated to providing investors with best-in-class investment strategies that include Exchange Listed Products, Alternative Asset Management and Private Resource Investments. The Corporation also operates Merchant Banking and Brokerage businesses in both Canada and the US. Sprott is based in Toront...
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Key Takeaways

Silver’s explosive 2025 rally was driven by a severe physical supply deficit, surging industrial demand, and record ETF accumulation, pushing prices to all‑time highs and creating one of the strongest annual performances in decades.
With supply still structurally constrained and geopolitical shifts tightening global inventories, silver is expected to remain supported by the same powerful forces, industrial demand, sovereign accumulation, and a chronically tight physical market.

The Ninepoint Silver Bullion Fund returned +50.8% (Series F CAD) in Q4 2025 bringing annual performance to +132.9% (Series F CAD) versus Silver Spot CAD returning +51.5% in Q4 and +136.8% year-to-date.

NINEPOINT SILVER BULLION FUND - COMPOUNDED RETURNS¹ (%) AS OF DECEMBER 31, 2025 (SERIES F NPP326) | INCEPTION DATE: MAY 10, 2011

	1M	YTD	3M	6M	1YR	3YR	5YR	10YR	INCEPTION
FUND	24.3%	132.9%	50.8%	98.2%	132.9%	42.7%	22.3%	15.8%	5.0%
INDEX	24.6%	136.8%	51.5%	100.0%	136.8%	44.7%	24.0%	17.8%	7.0%

Silver capped a landmark 2025 with an extraordinary Q4, surging from $47.32 on October 1 to a quarter-end close of $77.92. With a 65% quarterly gain: the metal shattered its 1980 record of $49.95 in early October, peaked at $80 in mid-December, and settled near its highs after a brief reversal.

Ultimately, silver’s 166% year-to-date rally is the strongest the metal has experienced in decades, outperforming gold’s 66% annual rise.

This parabolic move was driven by a combination of supply constraints and robust physical and investor demand, though it culminated in heightened volatility, including a 16% intraday drop on December 29 amid profit-taking and margin adjustments.

Key Drivers in Q4

Silver’s rally in the final quarter of 2025 was driven by a "perfect storm" of structural supply deficits and aggressive institutional accumulation. While global supply deficits persisted for a fifth year (projected at 95 million ounces by the Silver Institute), the price action was specifically catalyzed by three pillars: industrial demand, a resurgence in ETF flows and central bank positioning.

Industrial Demand

Silver is uniquely caught between the Green Transition and the AI Revolution. Unlike gold, which is primarily a monetary asset, silver’s conductivity makes it irreplaceable in modern infrastructure with key demand drivers including:

Photovoltaic (Solar) Efficiency: New N-type solar cells require significantly more silver paste per watt than older models. Even as engineers try to "thrift" (use less) silver, the sheer volume of global solar installations is outstripping those savings.
The AI Connection: AI data centers require massive power distribution upgrades and high-speed connectors. Silver’s thermal and electrical conductivity is unmatched, making it the "hidden" mineral play of the Silicon Valley boom.
EV Infrastructure: Beyond the cars themselves, the charging grid and onboard power electronics are consuming silver at a rate 30% higher than traditional internal combustion vehicles.

ETF Flows¹

In Q4, Exchange-Traded Funds (ETFs) shifted from being passive tracking tools to being the primary competitors for physical bullion.

Inflow Parabola: Global silver ETFs absorbed a record 187 million ounces in 2025, with a massive concentration in Q4. By year-end, total holdings reached 1.13 billion ounces, valued at over $80 billion, equivalent to roughly 15 months of global mine production.
The Squeeze Mechanic: Unlike "paper" futures, physically backed ETFs must acquire metal to back new shares. In Q4, this demand hit just as LBMA (London) vaults dropped to their lowest levels in a decade (<18,500 tonnes), creating a scenario where ETFs now hold more silver than the total available "free float" in official exchange vaults.
Institutional Appetite: Silver ETFs delivered returns of ~52–66% in Q4 alone, outperforming gold (17%) and the S&P 500. This triggered "momentum" buying from generalist funds that traditionally ignored the metal.

Central Bank Positioning²

In 2026, the silver market has been reshaped by a shift in Central Bank Positioning, transitioning the metal from a purely industrial/retail asset to a strategic sovereign reserve. This "monetary return" is led by three key players:

Russia: Leading the charge with "explicit policy," Russia’s 2025–2027 federal budget specifically allocated roughly $535 million (51.5 billion rubles) for precious metals, including silver for the first time. As the world's eighth-largest producer, Russia is reportedly bypassing global exchanges to stack its own mine supply (approx. 38.5M oz/year) directly into state vaults, further tightening global physical availability.
Saudi Arabia: In a landmark move, the Saudi Central Bank (SAMA) shifted from "quiet experimentation" to active accumulation in late 2025. Unlike Russia's physical focus, the Kingdom utilized high-liquidity tools like the iShares Silver Trust (SLV) and silver-miner ETFs to build rapid positions, signaling a broader BRICS-aligned effort to diversify reserves away from the US Dollar.
India: While the Reserve Bank of India (RBI) remains gold-focused, the government has "institutionalized" domestic silver demand by slashing import duties to 6% and incentivizing silver ETFs. This policy shift turned the 2025 Diwali season into a significant demand driver, with imports nearly doubling as silver became a mainstream alternative for both citizens and domestic funds.

Market Dynamics and Risks

Q4 Underscored Silver’s Dual Identity - industrial utility established a firm price floor, while monetary demand fueled volatility. Notably, open interest declined even as prices doubled, signaling a structural shift from paper speculation toward physical delivery. While silver saw a late-December correction from $84.00 to $70.52, momentum continued to be positive in early 2026.

Outlook for 2026

Silver’s unique position as an industrial metal, critical mineral and monetary asset combined with a tight physical market, has resulted in significant price appreciation in 2025. We expect similar market dynamics in 2026.

Silver supply remains structurally constrained and unable to meet rising demand, as roughly 80%³ of production is a by-product of base metal mining (copper, lead, and zinc), preventing miners from quickly increasing output. This inelasticity, combined with declining ore grades and a lack of new primary mine commissions, has pushed the market into its sixth consecutive year of structural deficits. Furthermore, geopolitical shifts—such as China’s export licensing requirements and Russia diverting its domestic supply into state vaults—have drained global inventories to decade lows, leaving the physical market exceptionally tight.

Sincerely,
Ninepoint Partners

1. Silver Institute, Sprott, NASDAQ, Bloomberg
2. Kitco, The Economic Times (India)
3. Silver Institute
All figures in USD unless stated otherwise.

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Commentary

October 2025

Ninepoint Silver Bullion Fund
The Ninepoint Silver Bullion Fund returned +5.1% (Series F CAD) in October bringing year-to-date performance to +62.3% (Series F CAD) versus spot silver in CAD returning +5.2% in October and +64.4% year-to-date.

Commodities

Gold & Precious Minerals
Commentary

December 2024

Ninepoint Silver Strategy
Silver had a strong 2024, rising 21.46% through the year. The Silver Institute expects that silver will yet again be in a deficit for 2024 as robust industrial demand for silver is expected to continue. The supply demand deficit is expected to continue for the fourth consecutive year. During the first three quarters of 2024, strong demand for silver and rising premiums seen in China catalyzed a move to nearly $35 per ounce—the highest level since 2012. If it were not for the large pullback silver experienced in Q4, silver would have outperformed gold’s exceptional returns.

Gold & Precious Minerals

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NPP326

(Series F)

Ninepoint Silver Bullion Fund

Mutual Funds Exchange Traded Funds Bullion

$32.71 $1.24 (3.92%)

As at 1/28/2026

Growth of $10,000 Invested as at 12/31/2025

Performance as at 12/31/2025

1 Year
132.96%

3 Year
42.75%

5 Year
22.25%

10 Year
15.77%

Incept.¹
4.98%

¹ Inception Date 5/10/2011

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 12/31/2025. Where applicable, all figures are annualized and based on monthly returns since inception. Risk-free rate and minimum acceptable rate calculated using rolling 90-day CDN T-bill rate. The rate of return or mathematical table shown is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values of the mutual fund or returns on investment in the mutual fund. Top ten holdings, sector allocation and geographic allocation as at 12/31/2025. 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: Active management risk; Commodity risk; Concentration risk; Credit risk; Currency risk; Cybersecurity risk; Derivatives risk; Inflation risk; Interest rate risk; Market risk; Series risk; Sub-adviser risk; Substantial securityholder 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 12/31/2025 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 a resident in Canada should contact their financial advisor to determine whether securities of the Fund may be lawfully sold in their jurisdiction.

Ninepoint Partners LP: Toll Free: 1.866.299.9906. Dealer Services: CIBC Mellon GSSC Record Keeping Services: Toll Free: 1.877.358.0540

¹All 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 12/31/2025. The Index is 100% Silver Spot (CAD) Index and is computed by Ninepoint Partners LP based on publicly available index information.

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

Ninepoint Partners LP is the investment manager to the Ninepoint 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 rate of return for series F shares of the Fund for the period ended 12/31/2025 is based on the historical annual compounded total return including changes in share value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. 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.

The opinions, estimates and projections (“information”) contained within this report are solely those of Ninepoint Partners LP and are subject to change without notice. Ninepoint Partners makes every effort to ensure that the information has been derived from sources believed to be reliable and accurate. However, Ninepoint Partners assumes no responsibility for any losses or damages, whether direct or indirect, which arise out of the use of this information. Ninepoint Partners 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.

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. Any reference to a particular company is for illustrative purposes only and should not to be considered as investment advice or a recommendation to buy or sell nor should it be considered as an indication of how the portfolio of any investment fund managed by Ninepoint Partners LP is or will be invested.

Ninepoint Partners LP and/ or its affiliates may collectively beneficially own/control 1% or more of any class of the equity securities of the issuers mentioned in this report. Ninepoint Partners LP and/or its affiliates may hold short position in any class of the equity securities of the issuers mentioned in this report. During the preceding 12 months, Ninepoint Partners LP and/or its affiliates may have received remuneration other than normal course investment advisory or trade execution services from the issuers mentioned in this report.