TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.

Metals and mining funds were dragged down this week on concern the recession may be deeper than previously expected. In contrast, gold and silver funds became safe havens.

As for commodities, aluminum fell 5% in the five trading days ending Thursday, May 14, while copper dropped 9.3%, lead slumped 5.4% and nickel declined 6.3%. Tin and zinc also decreased in value.

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The worst-performing metals and mining fund for the period,

PowerShares DB Base Metals Long ETN

(BDG)

, indexed to metals prices, gave up 8.5% of its value.

Losing 7.6%,

Market Vectors -- Steel Index Fund

(SLX) - Get Report

ranks as the second-worst performer. Its holding of

Cliffs Natural Resources

(CLF) - Get Report

cratered 27% as the company slashed its dividend and announced a share dilution with an equity offering.

AK Steel Holding

(AKS) - Get Report

plunged 13%, saying weak demand from the U.S. auto industry may force it to idle its Kentucky steel plant and lay off 750 workers for the rest of the year.

The weekly reading of steel production at 1.02 million tons is 53% below the year-earlier level, with mills running at 42.9% of capacity. U.S. plate steel prices have fallen $10 in a week and $72 in four weeks to about $594 per short ton.

The largest American aluminum smelter,

Alcoa

(AA) - Get Report

, a holding of the third-worst performing

SPDR S&P Metals & Mining ETF

(XME) - Get Report

, declined 11.3%. The fund retreated 7.6%. Global oversupply of aluminum was made worse for Alcoa, with Chinese producers restarting 1.4 million metric tons of idled capacity last month.

The two bright spots this week were gold and silver, rising 1.7% and 1.5%, respectively, as stores of value were sought as the stock market slipped lower.

The

GAMCO Gold Fund

(GOLDX) - Get Report

rose 5.4%. Its largest holding, accounting for more than 12% of assets is

Randgold Resources

(GOLD) - Get Report

, which gained 13%. The fund's second-largest holding, at 9% of assets, is

Agnico-Eagle Mines

(AEM) - Get Report

, which climbed 12%. The top-performing holding,

Gem Diamonds

, jumped 40% as the index that tracks the cost of the 25 best-quality diamonds of each color added another $11 to $6,650 this week.

The next-best gold fund,

Van Eck International Investors Gold Fund

(INIVX) - Get Report

, returned 5.2% as Canadian companies

Eastmain Resources

and

Amarillo Gold

each increased 23%, and

New Gold

(NGD) - Get Report

advanced 16%.

For more information, check out an

explanation of our ratings

.

Kevin Baker became the senior financial analyst for TSC Ratings upon the August 2006 acquisition of Weiss Ratings by TheStreet.com, covering mutual funds. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.