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June 7, 2024


AIRLINES TO SEE $30 BILLION PROFIT ON RECORD PASSENGER NUMBERS: IATA

Learn More

June 3, 2024


DATA CENTERS ARE DRIVING AN ELECTRICITY DEMAND SURGE FROM AI PLATFORMS LIKE
CHATGPT

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May 31, 2024


CAPITALIZING ON THE U.S. ENERGY SURGE WITH NATURAL GAS AND COPPER

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May 28, 2024


NVIDIA TOPS CORPORATE REPUTATION RANKINGS, OUTSHINING TECH PEERS

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May 24, 2024


AI TAKES CENTER STAGE IN VEGAS AS NVIDIA SOARS TO NEW HEIGHTS

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May 20, 2024


HOW BIDEN’S NEW TARIFFS ON CHINA COULD IMPACT THE U.S. AUTO INDUSTRY

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services that are not considered to be essential but are highly desired within a
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U.S. GOVERNMENT SECURITIES ULTRA-SHORT BOND FUND (UGSDX)

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obligations, while simultaneously pursuing a higher level of current income than
money market funds offer.

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RESOURCES


FRANK TALK

May 28, 2024

NVIDIA TOPS CORPORATE REPUTATION RANKINGS, OUTSHINING TECH PEERS

Full Article Read full article

HOW JAVIER MILEI’S “SHOCK THERAPY” IS TRANSFORMING ARGENTINA’S ECONOMY

Full Article
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AMERICANS OVERWHELMINGLY REJECT BIDEN’S PLAN TO TAX UNSOLD ASSETS

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GOLD’S BULL RUN IS NOT JUST A U.S. DOLLAR STORY

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INVESTOR ALERT

June 7, 2024

AIRLINES TO SEE $30 BILLION PROFIT ON RECORD PASSENGER NUMBERS: IATA

Full Article Read full article

CAPITALIZING ON THE U.S. ENERGY SURGE WITH NATURAL GAS AND COPPER

Full Article
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AI TAKES CENTER STAGE IN VEGAS AS NVIDIA SOARS TO NEW HEIGHTS

Full Article
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NEW 100% TARIFFS ON CHINESE EVS: BIDEN’S STRATEGY TO BOOST AMERICAN
MANUFACTURING

Full Article
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PRESS RELEASES

May 9, 2024

U.S. GLOBAL INVESTORS REPORTS RESILIENT RESULTS FOR A CHALLENGING MARCH QUARTER,
EXPANDS BRAND IN THE U.K.

Full Article Read full article

U.S. GLOBAL INVESTORS ANNOUNCES MERGER OF EUROPE-DOMICILED AIRLINES ETF INTO THE
TRAVEL UCITS ETF (TRIP), EXPANDING AND DIVERSIFYING INVESTMENT OPPORTUNITIES IN
GLOBAL TRAVEL INDUSTRY

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U.S. GLOBAL INVESTORS REPORTS STRONG RESULTS FOR DECEMBER QUARTER

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U.S. GLOBAL INVESTORS ANNOUNCES SHARE BUYBACK NUMBERS FOR DECEMBER 2023;
PROVIDES AN UPDATE ON COMPETITIVE YEAR-END PERFORMANCE FOR QUANT GOLD ETF

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INTERACTIVE RESEARCH

April 19, 2024

EXPLORING THE HISTORY OF GOLD’S ALL-TIME HIGHS

Full Article Read full article

CAN YOU GUESS WHICH MOVIES FEATURE GOLD?

Full Article
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UNDERSTANDING THE CHINESE ZODIAC

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GOLD RUSH QUIZ: TESTING YOUR KNOWLEDGE OF MODERN GOLD MINING

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ABOUT US


OUR STORY

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U.S. Global Investors, Inc. is an innovative investment manager with vast
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and patterns not only in the domestic markets, but also globally.

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PROSPECTUS

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 * Our Funds
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My Account Investor Relations
 * 
 * 
 * 
 * 
 * 

Investor Alert


AIRLINES TO SEE $30 BILLION PROFIT ON RECORD PASSENGER NUMBERS: IATA

Author: Frank Holmes
Date Posted: June 7, 2024 Read time: 37 min
Share
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This week, the International Air Transport Association (IATA) significantly
upgraded its profitability projections for airlines in 2024. The trade group now
expects net profits to reach $30.5 billion, an increase from $27.4 billion in
2023.

This surge in profitability is accompanied by record-high traveler numbers and
revenues. A fresh record number of passengers is expected to fly in the U.S.
this summer. For the full year, the total global number of travelers is
forecasted to reach approximately 5 billion, with revenues projected to soar to
$996 billion, a 9.7% increase from 2023.

The recovery in travel has been nothing short of remarkable. Domestic travel
bounced back to pre-pandemic levels by the spring of 2023, while international
routes have recently surpassed 2019 numbers. The IATA now expects the number of
world passengers to grow by an average of 3.8% per year over the next 20 years,
resulting in over 4 billion additional passenger journeys by 2043.

> “The human need to fly has never been stronger,” said Willie Walsh, IATA’s
> Director General.


BUSINESS TRAVEL SPENDING SET TO SURPASS $1.5 TRILLION THIS YEAR

While leisure travel has been leading the recovery, business travel is steadily
gaining momentum, albeit at a slower rate. A Morning Consult survey found that
only 10% of U.S. adults had traveled domestically for work in March 2024.

The trend appears to be headed in the right direction, however, with
corporations prioritizing domestic trips over long-haul international travel.
The Global Business Travel Association (GBTA) predicts global business travel
spending will surpass $1.5 trillion in 2024, up from $1.02 trillion in 2022.

Regarding the hotel market, investors are optimistic, but forecasts are being
downgraded. Profitability still lags pre-pandemic levels. Earlier this week, STR
and Tourism Economics revised down their 2024-2025 U.S. hotel forecast,
reflecting lower-than-expected performance in early 2024 and reduced growth
projections for the rest of the year.


DOMESTIC TRAVEL SPENDING IN CHINA

Another exciting development is the revival of Chinese outbound travel. The
World Travel & Tourism Council (WTTC) predicts that China’s travel and tourism
sector will contribute a record-breaking 12.62 trillion yuan ($1.7 trillion) to
the country’s economy by the end of this year.

Domestic travel spending in China is also expected to reach new heights,
providing a significant boost to the luxury market. As I’ve shared with you
before, Chinese shoppers were major luxury-goods spenders before the pandemic.
These shoppers are gradually returning, with domestic luxury spending up by 50%,
according to Bloomberg Intelligence. The resurgence is encouraging for long-term
luxury investments, both in mainland China and Europe.


SERVICES SEE A MARKED IMPROVEMENT

The airline industry’s recovery is part of a broader positive trend in the
services sector. The S&P Global US Services PMI, which includes the airline
industry, rose to a one-year high of 54.8 in May, accelerating past its
three-month moving average. This points to a marked expansion in services
activity, reflecting strong consumer demand and business confidence.

The airline industry presents a unique blend of recovery and growth
opportunities. I believe the group is well-positioned for sustained growth, with
strong profitability projections, an ongoing recovery in both leisure and
business travel and positive market dynamics. The rebound in Chinese travel and
its impact on the luxury market further supports the sector.

Here are the safest airlines in the world for 2024… watch the video!


INDEX SUMMARY

 * The major market indices finished up this week. The Dow Jones Industrial
   Average gained 0.29%. The S&P 500 Stock Index rose 1.32%, while the Nasdaq
   Composite climbed 2.38%. The Russell 2000 small capitalization index lost
   2.10% this week.
 * The Hang Seng Composite gained 0.62% this week. The KOSPI rose 0.83%.
 * The 10-year Treasury bond yield fell 7 basis points to 4.43%.


AIRLINES AND SHIPPING

STRENGTHS

 * The best performing airline stock for the week was Expedia, up 8.8%. In a
   recent interview, Korean Air Chairman and CEO Cho Won-Tae said that the
   airline is currently deciding between Boeing’s 787 Dreamliner and additional
   A350s, with the decision more likely to be the 787, as he notes that Boeing
   is a strong company, and he believes in its management.
 * JPMorgan notes that with the Red Sea crisis continuing, current tanker
   capacity remains constrained, supporting the recent pickup in the Baltic
   Clean Tanker Index. In addition, the bank says longer sailing distance
   (ton-miles) is the primary contribution (75-80%) to tanker demand growth in
   2024 with OPEC+’s latest cuts extension until end-2024 to be offset by rising
   long-haul Atlantic-Asia crude trade.
 * JetBlue provided a second quarter 2024 guidance update that noted demand
   trends were in-line with prior expectations, with implied earnings per share
   (EPS) moving higher on better operational performance (i.e., higher capacity
   production/lower non-fuel unit cost) and lower average fuel price.


WEAKNESSES

 * The worst performing airline stock for the week was El AL, down -16.5%.
   Cirium suggests that Airbus delivered 51 aircraft in May. According to
   Reuters, the slowdown may be attributed to new production pressures due to
   parts shortages and labor challenges.
 * Media reports suggest Ports of Auckland (POA) is currently consulting with
   major customers over proposed increases in port charges between CY25 and
   CY26. The changes, to name a few, include cargo tariff increasing at CPI+1%,
   peak container access fee up from $95 to $130/$175 in 2025/2026, as well as
   off-peak container access fee up from $40 to $75/$98 in 2025/2026.
 * According to Bank of America, weak demand continued to plague the Chinese
   aviation industry during the slack season with domestic yields down 14%
   year-over-year in May. The weak pricing is despite strong industry discipline
   with airlines cutting seats where demand is weak, shown through improving
   seat loads.

OPPORTUNITIES

 * According to Terra, at the IATA annual meeting, Azul’s CEO John Rogers said
   he is expecting the Brazilian government to announce aid packages to airlines
   within 15 days. The government plan discussed so far was to use public funds
   as collateral for BNDES loans to companies in the sector.
 * According to UBS, the Shanghai Containerized Freight Index (SCFI) is up
   sequentially 50% over the last five weeks. Several datapoints suggest the
   current backdrop may be favorable for further sequential rate increases in
   June. UBS sees K+N as the main beneficiary in an environment of higher ocean
   rates.
 * Embraer announced that Mexico’s state-owned carrier Mexicana has ordered 20
   E2 jets; ten E190-E2s and ten E195-E2s. Assuming each aircraft listing price
   at $75-84mn, this order should add around U$1.6 billion to Embraer’s backlog
   and make Mexicana the first E2 operator in Mexico, according to JPMorgan.

THREATS

 * According to the company’s CEO John Rodgerson, Azul has advanced in talks
   with Abra Group regarding a possible consolidation, however, the next steps
   should be on hold until the conclusion of GOL’s chapter 11. Any eventual
   agreement would have to go through the approval of GOL’s creditors and the
   justice system in the United States, which is involved in restructuring the
   airline.
 * Sea Intelligence estimates 5.7% of the global container fleet is absorbed by
   port congestion versus 14% at the Covid peak and 2-4% historical average.
   Clarkson’s’ average sailing speed has been decelerating over recent months.
   High levels of cargo left behind are supportive for capacity utilization over
   the next weeks. Equipment shortages at several carriers stand in the range of
   10-15% of all containers in use.
 * Spirit Airlines announced that Brian McMenamy, Vice President and Controller,
   has been named as Interim CFO, effective June 14. McMenamy succeeds Scott
   Haralson, EVP and CFO, who is departing to become CFO of a company outside of
   the airline industry. The company continues to expect cost saving initiatives
   to benefit 2024 by over $75M with annualized run-rate savings estimated at
   over $100M.


LUXURY GOODS AND INTERNATIONAL MARKETS

STRENGTHS

 * Lululemon reported an earnings beat, and the company raised its profit
   outlook for the full year. First-quarter sales were flat in America, while
   rising 25% in the international segment. Lululemon shares gained 5% on
   Thursday after the company released financial results after the close of the
   prior day.
 * Industria de Diseño Textil, a Spanish fashion company best known for its
   brand Zara, reported an earnings beat as well. The company posted operating
   income of 1.6 billion Euros in the three months to April 30, up from 1.48
   billion Euros, meeting analyst estimates. Sales increased by 7% in the first
   quarter of the financial year.
 * Aston Martin, a car maker, was the best performing S&P Global Luxury stock,
   gaining 12.9% in the past five days. Shares gained after the new Aston Martin
   Vantage GT3 recorded its first international triumph just four months after
   being unveiled to the world at Silverstone, with an outstanding GT300 Class
   victory in Japan’s most prestigious endurance racing championship – the
   AUTOBACS SUPER GT Series. The success also marks the British ultra-luxury
   brand’s first-ever win in the series.

WEAKNESSES

 * Germany, Europe’s largest economy, reported weaker industrial production,
   which disappointingly dropped 0.1% month-over-month in April, following a
   0.4% decline in March. Year-over-year industrial production declined by 3.9%,
   below the expected correction of only 3%.
 * Remy Cointreau shares underperformed in the past year, and the company said
   it will take another year to return to growth following a sharp downturn in
   the key U.S. market and China. Remy shares rose as much as 5.8% in early
   Paris trading after operating income for the year came in slightly above
   analyst estimates. The stock has lost 40% in the past 12 months.
 * RealReal, an online marketplace for resale of luxury goods, was the worst
   performing S&P Global Luxury stock, losing 16.3% in the past five days.
   Shares declined after eBay announced increasing its assortments to some
   luxury items.

OPPORTUNITIES

 * Bloomberg’s luxury analysts predict that the market’s sales growth targets
   could climb beyond mid-single digits in 2024, supported by Chinese shoppers
   returning due to a bounce in travel. The most recent Bloomberg Intelligence
   travel survey confirmed a pickup in Chinese tourists’ long-haul plans from
   April to June. Overall tourism, which made up 40% of the luxury goods market
   in 2019 (pre-pandemic), could reach 32% in 2024 after 10% in 2022, Bloomberg
   reported.
 * Bank of America turned more positive on the luxury sector after a recent
   correction since mid-March. Luxury stocks underperformed U.S. stocks
   represented by the S&P 1500 Index and European stocks represented by the
   STOXX 600, and the broker sees it as a buying opportunity. Ashley Wallace
   sees positive mid- to long-term perspectives, expecting the sector to grow by
   9%.
 * On Thursday, the ECB did not disappoint the market and cut rates as expected
   by 25 basis points following the Bank of Canada, which also cut rates by 25
   basis points earlier in the week. The Federal Reserve Bank will decide
   whether to cut rates or not in the United States next week. The FOMC rate
   decision will be announced on June 12.

THREATS

 * Tesla’s sales in China rose in the past three months to 72,573 units in May,
   up 17% from a year earlier. Total sales of EVs are increasing in China;
   however, BYD sells far more EVs in China than Tesla does. BYD sold 330,488
   units in May, marking the third straight month of more than 300,000 in car
   sales.

 * eBay expanded its consignment service on Tuesday to include high-end watches,
   jewelry, and footwear. Among the brands being accepted by the program are
   Christian Louboutin, Jimmy Choo, and Louis Vuitton for shoes; Chanel, David
   Yurman, and Neil Lane for jewelry; and Breguet, Girard-Perregaux, and
   Jaeger-LeCoultre for timepieces. In recent years, eBay has been focusing its
   efforts on making high-end, pre-owned items easier to sell and buy on its
   platform. It has implemented programs like Certified by Brand and
   Authenticity Guarantee to ensure that users feel confident when buying and
   selling luxury items on the website. The second-hand market for luxury items
   is expanding.
 * After 30 years with Chanel, including the last five years as artistic
   director, Virginie Viard will leave the company. Virginie Viard ascended to
   the role of artistic director in 2019 following the passing of Karl
   Lagerfeld. Under Viard’s leadership, Chanel experienced substantial financial
   growth. The company did not reveal her replacement.


ENERGY AND NATURAL RESOURCES

STRENGTHS

 * The best performing commodity for the week was natural gas, rising 13.72%.
   Europe’s gas prices jumped to the highest level this year following an outage
   at a gas processing plant in Norway, highlighting the increasingly pivotal
   nature of Norwegian supplies after the continent largely weaned itself off
   Russian imports. The price of the European benchmark TTF surged past €38 per
   megawatt hour on the Intercontinental Exchange, up more than 13%, according
   to UBS. Further price increases, at least in spot markets, to generate enough
   power to meet peak demand for electricity, are likely to be passed on to
   consumers in the Western United States, who are under an intense heat dome
   that is pushing temperatures up to 30 degrees hotter than normal.
 * Compounding the strength of natural gas prices is the fact that drilling
   activity in the U.S. shale patch has dropped to its lowest level in two and a
   half years, as reported by Bloomberg. The move comes as operators are making
   good on their vow to deliver only subdued supply growth this year in the wake
   of near record low prices earlier this year.
 * Consolidation activity amongst energy producers is always a wildcard, but the
   tidal wave of M&A unfolding in the United States is like a fever that has yet
   to run its course. U.S. deals appear aimed at achieving quality scale, a
   lower cost of capital, overhead cost savings—and bolstering resource depth or
   enhancing portfolio diversification, according to RBC.

WEAKNESSES

 * The worst performing commodity for the week was uranium, as proxied by the
   Sprott Physical Uranium Trust, dropping 8.95%. On Friday morning, the change
   in nonfarm payrolls data came in much stronger than expected, dashing hopes
   of any near-term interest rate cuts by the Federal Reserve. The news was met
   with an across-the-board drop in copper and precious metal prices. Copper was
   off as much as 4.40%.
 * Base metal futures are traded mainly on three exchanges: CME (Chicago
   Mercantile Exchange), LME (London Metals Exchange) and SHFE (Shanghai Futures
   Exchange). These have a key element in common: they all offer paper contracts
   that are physically settled. When metals inventories in any of these
   exchanges are low, contracts are at risk of a short squeeze. With copper
   surpluses unlikely to develop soon, Bank of America sees more frequent and
   volatile price swings.
 * Oil tumbled after OPEC+ unexpectedly rolled out a plan to restore some
   production to the market this year, adding to the bearish momentum crude has
   been experiencing for months. Both benchmarks have been at their lowest
   prices since February. OPEC and its allies over the weekend agreed to start
   rolling back some production cuts starting in October, earlier than many
   market watchers had expected, according to Bloomberg. Later, the Saudi Energy
   Minister noted the hikes in production were condition upon market conditions,
   such as the current level of pricing.

OPPORTUNITIES

 * Over the last two weeks, as copper prices have come under selling pressure
   from the recent peak of $11,000 per metric ton, JPMorgan has noticed a more
   significant rotation in investor interest towards aluminum. To some degree
   they think this shift helps explain aluminum’s outperformance this week
   despite a sharper pullback in copper amid profit-taking. As of writing,
   aluminum prices are up by 13% quarter-to-date (QTD), slightly outpacing
   copper at close to 11%.

 * The Peruvian Minister of Energy and Mines, Rómulo Mucho, announced the
   approval of the technical report related to the $600 million Cerro Verde
   copper mine expansion project. Cerro Verde, located in the southwestern
   Arequipa region, is responsible for almost 19% of the copper and 34% of the
   molybdenum produced in Peru and operates one of the world’s largest
   concentrating facilities with an average milling rate of more than 400,000
   metric tons of ore per day, according to Bank of America.
 * RBC feels quality energy producers have gone on sale. Corporate consolidation
   amongst U.S. energy companies is high. And the new model energy producers
   have embraced global financial resilience with shareholder return
   optionality. Simply put, energy investing is no longer just about crude oil
   price volatility.

THREATS

 * According to JPMorgan, gasoline inventories had a counter-seasonal 2 million
   barrels per day build last week, driven by refinery throughputs reaching
   17.1mm bpd, the highest level of runs for this time of year since 2018.
   Gasoline inventories now sit at 229mm bbl., 6% above levels from last year at
   this time and 4% above 2022’s levels.
 * While OPEC+ extended all three layers of production cuts (2mb/d of group cuts
   through 2025, 1.66mb/d of voluntary cuts through 2025, 2.2mb/d of extra
   voluntary cuts through 2024Q3), Goldman sees the meeting as bearish because
   eight OPEC+ countries already signaled to gradually phase out the 2.2mb/d of
   extra voluntary cuts over 2024Q4-2025Q3, despite recent upside surprises to
   inventories. And as noted above, they believe current prices are too low.
 * Fundamentally, stronger-than-expected Chinese aluminum demand year-to-date
   has been largely offset by higher supply, leaving global balances little
   changed on net. Moreover, ex-China supply is responding too with capacity
   restarts in Europe coming quicker than expected. Overall, JPMorgan sees a
   roughly balanced market this year with a 150kmt global deficit. In 2025, a
   stronger rebound in ex-Chinese demand is expected to take the reins as
   Chinese primary aluminum demand slows on the back of stronger growth in
   recycled metal, keeping global demand growth around 3% year-over-year.


BITCOIN AND DIGITAL ASSETS

STRENGTHS

 * Of the cryptocurrencies tracked by CoinMarketCap, the best performer for the
   week was Notcoin, rising 84.95%.
 * A more positive U.S. political environment for digital assets will likely
   help propel Bitcoin to a record amount or even higher by the end of the year,
   according to Michael Novogratz. “If we take $73,000 in the next couple of
   weeks or so, we are going to end the year at $100,000 or higher” he commented
   during a Bloomberg radio interview. 
 * The U.S. is reclaiming its position as the undisputed top dog of
   cryptocurrency markets, reports Bloomberg. From a crop of record-shattering
   Bitcoin ETFs to more accommodating regulators, swelling political donations
   and a rising presidential contender in crypto backer Donald Trump, signs of a
   U.S. revival are suddenly everywhere.

WEAKNESSES

 * Of the cryptocurrencies tracked by CoinMarketCap, the worst performer for the
   week was Beam, down 14.21%.
 * A crypto investor known as “Bitcoin Jesus” has been released on bail in
   Spain, where he faces extradition to the U.S. on tax fraud charges. Roger Ve
   was allowed to leave jail May 17 after posting $163,000 in bail on the
   condition that he remains in Spain and hand in his passport, writes
   Bloomberg. 
 * MicroStrategy and its co-founder and Chairman Michael Saylor will pay $40
   million to resolve a tax fraud lawsuit. The attorney general of Washington,
   DC, alleged the billionaire failed to pay more than $25 million in income
   taxes.

OPPORTUNITIES

 * Bitcoin briefly topped $71,000 this week, with crypto investment products
   seeing inflows for the fourth consecutive week and the latest GameStop frenzy
   driving memecoin speculation, writes Bloomberg.

 * Kraken, one of the oldest cryptocurrency exchanges, is considering raising a
   final funding round ahead of a possible initial public offering after
   receiving inquiries from potential investors during the current digital-asset
   market rally, writes Bloomberg. 
 * Turkey isn’t planning to tax profits on stocks and cryptocurrency, the
   country’s Treasury and Finance Minister said. As reported by Bloomberg, the
   government is considering a “very limited” transaction tax on the assets.

THREATS

 * Japanese crypto exchange DMM Bitcoin plans to raise 50 billion yen from group
   companies and plow the funds into buying the largest digital asset to make
   customers whole after suffering a major hack. The outflow was equivalent to
   4,503 Bitcoin or roughly $320 million at around 7:15am London time, writes
   Bloomberg.
 * Crypto trading company NovaTechFX and crypto mining company AWS Mining
   defrauded investors out of more than $1 billion in cryptocurrency, according
   to a lawsuit filed in New York. A state investigation revealed that investors
   deposited over $1 billion of crypto to NovaTech from 2019 to 2023 but less
   than $26 million was actually traded, writes Bloomberg. 
 * U.S. lawmakers accused Nigeria of taking a Binance Holdings executive
   “hostage” and urged President Biden to help secure his release. A U.S.
   citizen, Gambaryan, is head of financial crime compliance at Binance and has
   been held at a prison in the Nigerian capital since April, writes Bloomberg.


GOLD MARKET

This week gold futures closed the week at $2,305.60, down $40.20 per ounce, or
1.71%. Gold stocks, as measured by the NYSE Arca Gold Miners Index, ended the
week lower by 4.05%. The S&P/TSX Venture Index came in off 3.70%. The U.S.
Trade-Weighted Dollar rose slightly gaining 0.23%.

STRENGTHS

 * The best performing precious metal for the week was palladium, up 0.56%.
   According to CIBC, Agnico highlighted operational improvements related to the
   recently commissioned Shaft 4, improvements related to mining methods, and
   high-grade opportunities in the South Mine Complex Zone. This has improved
   working conditions and operational efficiencies, which yielded increased
   production and reduced unit costs.
 * Anglo American will list its 79% owned subsidiary Anglo-American Platinum
   (Amplats) in London to stem capital outflows when the group unbundles its
   shares. “What we would be looking to do is set up a listing on the UK stock
   exchange to help manage that potential flowback,” Anglo American CEO Duncan
   Wanblad told Business Live in an interview.
 * According to UBS, gold equities look attractive into 2025 with their coverage
   trading on average <5x enterprise value-to-EBITDA (EV/EBITDA) and >10% free
   cash flow (FCF) yield. With 2025 gold consensus (US$2,183/oz) -7% vs spot,
   they look to earnings upgrades across the sector.

WEAKNESSES

 * The worst performing precious metal for the week was platinum, down 6.76%.
   Two factors hit the gold and precious metal prices on Friday, first data
   released by The Peoples Bank of China showed that China’s central bank didn’t
   buy any gold last month, ending a massive buying spree that ran for 18 months
   and helped drive the precious metal’s rally as reported by Bloomberg. This
   took about $40 of the spot gold price overnight.
 * Further on Friday morning, the change in nonfarm payrolls data came in much
   stronger than expected, knocking anther $20 off the gold price and dashing
   hopes of any near-term interest rate cuts by the Fed. By the close of the
   day, spot gold had sunk close to $88 or 3.7%

 * De Beers will ditch a controversial experiment to sell lab grown diamond
   jewelry, ending a six-year program that broke one of its oldest taboos. While
   the company long held the technology to make synthetic gems, it always
   refused to sell them as jewelry, fearing they would undercut the allure of
   natural stones, according to Bloomberg.

OPPORTUNITIES

 * Bank of America feels a competing asset class is not necessarily detrimental
   to gold: the rise of Bitcoin reinforces the investment case for gold, which
   could lead investors to view a mix of gold and Bitcoin as required in
   portfolios. The report noted 71% of U.S. financial advisors have little to no
   allocation in gold (1% or less). From our perspective as a gold fund manager,
   If the younger generation of Bitcoin investors start buying gold to diversify
   their investments, they will discover that it is very hard to hack a physical
   asset, insuring the safety of wealth from electronic threats.
 * According to Bank of America, silver, a highly conductive and reflective
   metal, is an integral component in generating electricity through the
   photovoltaic effect in solar. The accelerated adoption of PV technology drove
   a 300% increase in PV related silver demand from 51 million ounces (Moz) in
   2013 to 194 Moz in 2023. 
 * According to BMO, B2Gold announced that it has entered into an agreement to
   sell a portfolio of 10 precious and base metals royalties to Sandbox
   Royalties Corp (which has been renamed to Versamet following the
   transaction). In exchange for the royalty package, B2Gold will receive 153.2M
   common shares at a price of C$0.80/share.

THREATS

 * Botswana president Mokgweetsi Masisi wanted a quick separation from Anglo
   American in terms of the UK group’s plans to sell its 85% stake in the
   diamond miner. Botswana has a 15% stake in De Beers through a joint venture
   held with Anglo American which earlier this month outlined plans to sell its
   long-held diamond investment.
 * According to RBC, for Sibanye, the current employment disagreement revolves
   around the entitlement to the employee share option scheme. Based on the
   existing agreement, employees would be entitled to this benefit once the
   Kroondal acquisition is completed. Although an agreement between the parties
   can likely be reached, this disruption adds another layer of complexity to
   the investment case amid still lagging PGM prices.
 * Calibre Mining reports that a geotechnical incident occurred on the west wall
   of the Limon Norte open pit in Nicaragua on May 25 that did not impact
   personnel or equipment, but requires a change to mine sequencing that will
   negatively impact Q2/24 gold production, according to Scotia.


DEFENSE AND CYBERSECURITY

STRENGTHS

 * Israel has confirmed the purchase of 25 F-35 fighter jets from the United
   States for around $3 billion, with deliveries starting in 2028. The country
   is enhancing its fleet to 75 and strengthening its strategic alliance amid
   ongoing regional tensions and international protests.
 * Lockheed Martin and Aerostar inaugurated Europe’s first certified HIMARS
   maintenance center in Bacau, Romania, enhancing readiness and reducing
   operational costs for HIMARS rocket systems, creating jobs, and expanding
   Aerostar’s military and aerospace service capabilities.
 * The best performing stock in the XAR ETF this week was Boeing, rising 7.11%.
   After overcoming thruster issues, Boeing’s Starliner successfully docked with
   the International Space Station, completing a crucial test flight.

WEAKNESSES

 * The U.S. Air Force’s RQ-4B Global Hawk reconnaissance drone went off the
   radar during a mission over the Black Sea near Crimea, with no additional
   details provided by RIA Novosti or Flightradar, as of June 4. The incident
   follows previous drone activities in the region, including a March 2023
   incident where a U.S. MQ-9 Reaper drone crashed into the Black Sea after a
   reported encounter with a Russian Su-27 fighter jet.
 * Israeli Prime Minister Benjamin Netanyahu stated that there will be no
   permanent cease-fire with Hamas until Israel’s conditions, including the
   destruction of the militant group, are met. Temporary pauses to return
   hostages may be considered, despite President Biden’s proposal for a
   permanent truce.
 * The worst performing stock in the XAR ETF this week was Astronics
   Corporation, falling 9.00%, on no headline news.

OPPORTUNITIES

 * Huntington Ingalls Industries has appointed Tim Brown and Terry Nichols to
   key leadership roles in Australia to advance the goals of the AUKUS
   trilateral partnership, focusing on nuclear-powered submarines and advanced
   defense technologies.
 * Nvidia CEO Jensen Huang announced at Computex 2024 that the company will
   release its next-generation AI chip platform, Rubin, in 2026, featuring new
   GPUs, CPUs named Versa, and networking chips. It also has plans to launch a
   new family of AI chips annually, positioning Nvidia to dominate the AI chip
   market and lead a “robotic” future. In addition, Nvidia passed Apple this
   week in terms of market cap, briefly making it the world’s most valuable
   company.

 * The global autonomous boats market, valued at nearly $1.2 billion in 2023, is
   projected to grow at a CAGR of 6.51% to reach $1.7 billion by 2028 and
   further expand to $2.4 billion by 2033. The growth is driven by increased
   seaborne trade, defense expenditures, and government support, despite
   potential cyber-attack threats, with significant growth opportunities in
   commercial and military segments, hardware and software components, diesel
   fuel and electric batteries, and various automation levels, (particularly in
   North America, the Middle East, and Western Europe).

THREATS

 * The Lebanese armed group Hezbollah recently released a video showing a
   drone-guided artillery strike on an Israeli Iron Dome air defense battery,
   raising serious concerns about Israel’s security. If these batteries are
   destroyed, it will create dangerous conditions for Israel by compromising the
   effectiveness of its highly touted air defense system and leaving northern
   regions vulnerable to attacks.
 * Norway’s Chief of Defense, Eirik Kristoffersen, says NATO has a
   two-to-three-year window to bolster defenses before Russia can potentially
   launch a conventional attack, emphasizing the urgency to rebuild forces and
   stocks while supporting Ukraine.
 * In response to NATO allowing Ukraine to use Western weapons against Russia,
   Vladimir Putin has threatened to deploy missiles within range of Britain and
   other Western allies, echoing the Cuban Missile Crisis.

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Securities and Exchange Commission (“SEC”). This does not mean that we are
sponsored, recommended, or approved by the SEC, or that our abilities or
qualifications in any respect have been passed upon by the SEC or any officer of
the SEC.

This commentary should not be considered a solicitation or offering of any
investment product. Certain materials in this commentary may contain dated
information. The information provided was current at the time of publication.
Some links above may be directed to third-party websites. U.S. Global Investors
does not endorse all information supplied by these websites and is not
responsible for their content. All opinions expressed and data provided are
subject to change without notice. Some of these opinions may not be appropriate
to every investor.

Holdings may change daily. Holdings are reported as of the most recent
quarter-end. The following securities mentioned in the article were held by one
or more accounts managed by U.S. Global Investors as of (03/31/2024): 

*The above-mentioned indices are not total returns. These returns reflect simple
appreciation only and do not reflect dividend reinvestment.

The Dow Jones Industrial Average is a price-weighted average of 30 blue chip
stocks that are generally leaders in their industry. The S&P 500 Stock Index is
a widely recognized capitalization-weighted index of 500 common stock prices in
U.S. companies. The Nasdaq Composite Index is a capitalization-weighted index of
all Nasdaq National Market and SmallCap stocks. The Russell 2000 Index® is a
U.S. equity index measuring the performance of the 2,000 smallest companies in
the Russell 3000®, a widely recognized small-cap index.

The Hang Seng Composite Index is a market capitalization-weighted index that
comprises the top 200 companies listed on Stock Exchange of Hong Kong, based on
average market cap for the 12 months. The Taiwan Stock Exchange Index is a
capitalization-weighted index of all listed common shares traded on the Taiwan
Stock Exchange. The Korea Stock Price Index is a capitalization-weighted index
of all common shares and preferred shares on the Korean Stock Exchanges.

The Philadelphia Stock Exchange Gold and Silver Index (XAU) is a
capitalization-weighted index that includes the leading companies involved in
the mining of gold and silver. The U.S. Trade Weighted Dollar Index provides a
general indication of the international value of the U.S. dollar. The S&P/TSX
Canadian Gold Capped Sector Index is a modified capitalization-weighted index,
whose equity weights are capped 25 percent and index constituents are derived
from a subset stock pool of S&P/TSX Composite Index stocks. The NYSE Arca Gold
Miners Index is a modified market capitalization weighted index comprised of
publicly traded companies involved primarily in the mining for gold and silver.
The S&P/TSX Venture Composite Index is a broad market indicator for the Canadian
venture capital market. The index is market capitalization weighted and, at its
inception, included 531 companies. A quarterly revision process is used to
remove companies that comprise less than 0.05% of the weight of the index, and
add companies whose weight, when included, will be greater than 0.05% of the
index.

The S&P 500 Energy Index is a capitalization-weighted index that tracks the
companies in the energy sector as a subset of the S&P 500. The S&P 500 Materials
Index is a capitalization-weighted index that tracks the companies in the
material sector as a subset of the S&P 500. The S&P 500 Financials Index is a
capitalization-weighted index. The index was developed with a base level of 10
for the 1941-43 base period. The S&P 500 Industrials Index is a Materials Index
is a capitalization-weighted index that tracks the companies in the industrial
sector as a subset of the S&P 500. The S&P 500 Consumer Discretionary Index is a
capitalization-weighted index that tracks the companies in the consumer
discretionary sector as a subset of the S&P 500. The S&P 500 Information
Technology Index is a capitalization-weighted index that tracks the companies in
the information technology sector as a subset of the S&P 500. The S&P 500
Consumer Staples Index is a Materials Index is a capitalization-weighted index
that tracks the companies in the consumer staples sector as a subset of the S&P
500. The S&P 500 Utilities Index is a capitalization-weighted index that tracks
the companies in the utilities sector as a subset of the S&P 500. The S&P 500
Healthcare Index is a capitalization-weighted index that tracks the companies in
the healthcare sector as a subset of the S&P 500. The S&P 500 Telecom Index is a
Materials Index is a capitalization-weighted index that tracks the companies in
the telecom sector as a subset of the S&P 500.

The Consumer Price Index (CPI) is one of the most widely recognized price
measures for tracking the price of a market basket of goods and services
purchased by individuals. The weights of components are based on consumer
spending patterns. The Purchasing Manager’s Index is an indicator of the
economic health of the manufacturing sector. The PMI index is based on five
major indicators: new orders, inventory levels, production, supplier deliveries
and the employment environment. Gross domestic product (GDP) is the monetary
value of all the finished goods and services produced within a country’s borders
in a specific time period, though GDP is usually calculated on an annual basis.
It includes all private and public consumption, government outlays, investments
and exports less imports that occur within a defined territory.

The S&P Global Luxury Index is comprised of 80 of the largest publicly traded
companies engaged in the production or distribution of luxury goods or the
provision of luxury services that meet specific investibility requirements.


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