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| Money Metals News Alert | June 3, 2024 – Gold and silver managed to hold on to a slight gain versus the prior week's close after selling off at the end of the week.
Stock prices ended the week lower, despite an inexplicable rally on Friday following the news of Donald Trump's conviction in New York.
The Federal Reserve note dollar finished the week essentially flat, and 10-year Treasury yields edged slightly higher.
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 | Gold : Silver Ratio (as of Friday's closing prices) – 86.5 to 1 | | |
| Investing in a World of Uncertainty | | | |
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The rapidly eroding confidence in our institutions gets plenty of news coverage. We expect it will be a dominant theme for investors in the years ahead.
Investing success may require correctly answering the question about what to own in a world where free market forces are taking a back seat to crooked politicians and incompetent central planners.
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The guilty verdict against Donald Trump is currently the biggest news story. It would be a mistake to ignore the impact an event like this has on investor psychology.
Kevin O'Leary, of Shark Tank fame, summed it up this way: "The American brand has been dragged through the mud, sunk to the level of a banana republic where rulers take their political enemies out to the jungle to disappear."
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The rule of law is what makes the U.S. much more investable than Zimbabwe. Unfortunately, the Trump story isn't the only thing shaking confidence. It isn't even the only one from last week.
On Thursday, Chuck Shumer and 22 other Democrat legislators sent a letter imploring the Department of Justice to investigate and prosecute anticompetitive behavior in the oil and gas industry.
The editorial board at the Wall Street Journal says the evidence supporting allegations of price collusion is flimsy. The Federal Trade Commission is looking to scapegoat the industry for higher fuel prices. Chuck Shumer, Joe Biden, and Democrats generally are certainly eager to avoid the blame.
Regulators always tend to be captured and ineffective, but they now seem to have stopped paying anything more than lip service to the notion of impartiality.
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Recent events have been an eye-opener for Americans and they are more nervous by the day.
That has implications for investing.
In decades past, large cap oil and gas stocks performed as a solid investment and a good hedge against inflation.
Today, investors have other factors to consider before buying shares.
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They have to wonder whether or not the company can avoid price controls and/or a politically motivated prosecution by the Department of Justice.
The stories keep coming, and the bull market in uncertainty is beginning to roar.
Picking winners and losers from the universe of conventional assets – stocks, bonds and money markets – will be a challenge. Oil stocks are a great example. It might make sense to own them, but you definitely can't ignore the politics.
This is one reason gold and silver bullion have gotten more attention from investors, and it is why even more inflows of investment into the monetary metals are probably coming. | | |
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| Key Economic Data Scheduled for This Week | |
- Monday, June 3rd – ISM Manufacturing Index. The manufacturing sector has been in contractions for some time, and that is expected to continue in the report for May. Economists predict a reading of 49.6%, which would be a modest improvement versus the 49.2% reading in April.
- Tuesday, June 4th – Factory Orders. Order growth is expected to fall. The April number is forecast to be 0.7%, down from 1.6% growth in March.
- Friday, June 10th – Employment Report. Government employment data missed expectations for the first time in a long while last month. The number of jobs created in April came in at 175,000. The forecast for this week is 178,000.
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| This week's Market Update was authored by Money Metals Director Clint Siegner. | | |
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| This copyrighted material may not be republished without express permission. Offer only available through email promotion. Offer does not apply to previous orders and may not be combined with any other offer or program. Special shipping rates or other restrictions may apply to international orders. The information presented here is for general educational purposes only. Money Metals Exchange and its staff do not act as personal investment advisors. Nor do we advocate the purchase or sale of any regulated security listed on any exchange for any specific individual. While our track record is excellent, investment markets have inherent risks and there can be no assurance of future profits. You are responsible for your investment decisions, and they should be made in consultation with your own advisors. By purchasing from Money Metals, you understand our company is not responsible for any losses caused by your investment decisions, nor do we have any claim to any market gains you may enjoy. Money Metals Exchange is not a regulated trading "exchange" as defined by the CFTC and the SEC. | | |
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