Monday, April 14, 2025

Three Tips for Investors Navigating These Uncertain Times

Breaking News from America's #1 Precious Metals Dealer
Money Metals Exchange
Money Metals News Alert
April 14, 2025 – Gold and silver made big moves up last week in the face of intense stock and bond market volatility.

Gold and silver are down over 1% here on Monday morning, but gold is still trading over $3,200 – just below its all-time highs from Friday.

Last week, silver recovered more than half of its $4 down move from the prior week.

While the turmoil continues in global stock and bond markets, demand for physical gold and silver in the U.S. retail market has risen.

NEW! Money Metals Line of Silver Bars. Affordable silver in Every Size! Shop   Now!
Wholesalers have seen their excess inventories cleaned out over the past week, and mints are now firing back up their long-idle equipment to supply the markets. Money Metals, though, remains very well stocked.

 
Friday's Close
(Weekly Gain/Loss)
Monday Morning
(Gain/Loss from Friday's Close)
Gold
$3,251 (+6.5%)
$3,211 (-1.3%)
Silver
$32.50 (+0.9%)
$32.08 (-1.3%)
Platinum
$964 (+2.2%)
$969 (+0.5%)
Palladium
$950 (-0.2%)
$980 (+3.1%)
Gold : Silver Ratio (as of Friday's closing prices) – 100 to 1
Three Tips for Investors Navigating These Uncertain Times
Share this Article:
Talk about a roller coaster.

After plunging for several days, stocks soared after President Trump announced a tariff pause.

Gold also whipsawed, having dipped below $3,000 an ounce, the yellow metal regained much of its loss and closed over $3,200 on Friday.

It's hard to get a handle on what will happen next.

The only thing that seems certain is uncertainty. Volatility is up as shown by the VIX Index below.

While the volatility index cooled somewhat after the announcement of the tariff pause, there is still plenty of uncertainty and jitteriness in the market. We're just one announcement away from another round of market chaos.

Do you know what markets and businesses don't like?

Uncertainty.

What Is Regime Uncertainty?

We are in a period of extreme regime uncertainty. Whether you're an investor, a business owner, or an entrepreneur, it's extremely difficult to plan for the future under these conditions.

Regime uncertainty describes a lack of confidence in the direction of a government's future policies regarding taxes, regulations, and, in more extreme situations, the protection of property rights and the consistent application of the rule of law.

When people become unsure about what the government will do next, or if they fear a sudden shift in rules, it discourages long-term investment and economic activity.

Regime uncertainty tends to foster "analysis paralysis." People fixate on trying to figure out what might happen next and end up doing nothing, instead taking a "wait and see" attitude.

For instance, during the Great Depression, President Franklin D. Roosevelt created a great deal of regime uncertainty as he implemented the New Deal. Regulations and policies turned on a dime.

1 Oz Gold Maples (Queen Elizabeth II)
1 Oz Gold Maples (Queen Elizabeth II) | Shop Now >
Shop Now >>
Businesses became unsure about the federal government's increasing intervention in the economy through price controls, taxes, labor laws, and other economic policies.

Economist Robert Higgs argued that this "regime uncertainty" prolonged the Great Depression by discouraging private investment. As he put it, "Between 1935 and 1940, this matter attained prime importance. So many businessmen and investors lost confidence in their ability to forecast the future property-rights regime that few were willing to venture their money in long-term investments."

The bottom line is that long-term economic growth depends on predictable rules. Sudden shifts in taxation, regulation, or property rights make businesses defensive.

While not rising to the level of FDR, Trump's negotiating tactics are a breeding ground for regime uncertainty. Will the 90-day pause really last 90 days? Will exceptions be introduced? What happens in 90 days?

Nobody knows.

Navigating Regime Uncertainty

How do you navigate this kind of uncertainty?

If you're running a business, especially one that relies on imports, I don't know what to tell you.

But investors can weather this storm by keeping a few things in mind.
  1. Don't panic. You're going to see big swings in the market. Resist the temptation to react knee-jerk to the daily roller coaster ride. It's easy to get caught up in emotion. Don't.

  2. Focus on fundamentals. The trade war is happening within a broader context. Those fundamentals remain in place. We still have an inflation problem. We still have de-dollarization. We still have a lot of bubbles in the market. We still have massive amounts of debt. The laws of supply and demand remain firmly in place. It's important to focus on the big picture and not get too caught up in the latest headline.

  3. Gold and silver are a beacon of stability. That's not to say that the price won't swing wildly from day to day. But gold and silver are fundamentally money. They have been money for over 5,000 years, and they will continue to be money when the trade war is a distant memory. Gold and silver are the ultimate safe haven bids. They are generally insulated from regime uncertainty because there is no counterparty risk.
There is no telling what tomorrow will bring. But you can be sure that gold and silver will still be valued and desired around the world.

Click Here to Comment on this Article
Click   Here to Share this Article
This week's Market Update was authored by Money Metals
Contributing Writer Mike Maharrey.
Call Money Metals for Precious Metals Coins,
Bars, and Rounds 1-800-800-1865
We Buy Back Too!
Your Privacy FAQs Contact Us
   
Follow Us
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.

Money Metals Exchange  •  PO Box 2599  •  Eagle, ID 83616

Unsubscribe | Report Spam | View In Browser | Forward to a Friend | Ensure Email Delivery

No comments:

Post a Comment