Gold-related securities are among our top holdings, which is surprising as we are bottom-up investors.

How do we think about an asset that produces no cash flows?

There are two ways we look at it: from a supply-demand standpoint and versus currencies. Both are informed by gold’s key characteristics: gold is trustless, rustless, shiny and tiny.

From a supply-demand standpoint, gold has two qualities that make it different from copper, iron ore or lithium.

The first is that it’s rustless. It doesn’t degrade over time, so all the world’s gold is still in existence and theoretically available for sale. This means supply and demand is not purely a matter of mines versus consumers.

Second, gold is shiny. Its primary function is not as an input to other products but as jewellery or a store of value. In this regard, gold has been viewed for millennia as the best store of value available to most people.

Being rustless and shiny makes gold nice to have around your finger or hidden away for a rainy day.

On the supply side, gold is tiny – that is, it is rare to find in the ground and getting rarer.

The supply of new gold has been slowly dropping over recent decades. Unlike something like lithium, humans have been scouring for gold for centuries and the most bountiful deposits have been exhausted.

Aggregate mine quality has been dropping for a very long time. This translates into higher and higher mining costs, especially with lower ore grade being met by higher labour and energy costs, plus increasing environmental expenses. Miners require a higher price to justify their higher costs.

On the demand side of the equation, while jewellery demand has been fairly constant, gold has long been the first stop in the wealth accumulation process for much of the world.

As the emerging world has been growing a middle class, demand for gold has accelerated in recent years. That has been boosted by gold’s fourth quality: it is trustless.

Gold is not anyone else’s liability, and that becomes more valuable as trust becomes more scarce.

Coincident with the acceleration of populism and a re-bifurcation of the world into East versus West, both nations and individuals feel less trusting. On top of that, the US has weaponised the dollar system against its adversaries, cutting them off from Swift payments and freezing their central bank reserves.

Unsurprisingly, central banks for adversaries and non-adversaries alike are buying gold, and we expect that to continue. Gold’s trustless quality is becoming more valuable as trust in the US dollar system wanes.

So, from a strictly supply-demand standpoint, the minimum price hurdle has been steadily increasing with lower mine quality and rising costs, and new demand is outstripping new supply and the urge to sell by current holders. So long as mining costs don’t fall and the drivers of mass demand remain, the price of gold should stay well underpinned.

The other standpoint is to view gold versus currencies. Many scoff at this perspective, but being trustless, rustless, shiny and tiny makes gold very currency-like.

Its validity as such has been proven over a long time, with its first official use by the Egyptians in 1500 BC. Further, it’s the only currency-like asset that has not been devalued through governmental mismanagement.

It is important to remember the number of dollars, pounds or euros you see in an account is only worth what others are willing to give you in exchange. Unlike gold, where the supply is essentially fixed, all paper currencies suffer the same frailty – politicians or their appointees control the printing press and their desire is generally to get re-elected and their time horizon only extends through their tenure.

This makes them inclined to print, spend and give away as much as they can get away with. Recently, that has been a lot!

On the US government’s own forecasts (using assumptions we consider rosy), Federal debt to gross domestic product is set to rise from today’s 100% to 120% and beyond.

Essentially, all the increase is in mandatory programmes like pensions and healthcare. With more debt and ongoing deficits, interest expense creeps up. This year, the US will spend more on interest servicing its debt than it spends on its entire military.

Higher interest expense makes deficits worse, necessitating further debt issuance to plug the hole. With more debt comes higher interest expenses, worse deficits and yet more debt – it can become a spiral.

While every day, the camel appears to be fine under the weight of the straw on its back, the risk that the camel’s back breaks certainly exists, with very significant implications for markets and accumulated wealth. In this light, we currently view holding a decent amount of gold exposure as prudent.

The remaining question is what would make us sellers and, here, gold is not so different from the other holdings in our multi-asset portfolios. Every security is in a continuous competition for capital.

The most likely cause for us to sell gold will be to free up capital for better opportunities – if equities decline and gold holds up better, for instance, fulfilling its traditional diversifying role.

A swing in the pendulum towards increased fiscal responsibility or reduced geopolitical conflict would also swing our views, and could make big swathes of the equity and fixed-income universe more compelling on a fundamental view.

While we hope for that improvement, it looks unlikely to us today. Gold may just prove to shine brightest when the outlook appears to be dimmest elsewhere.

Alec Cutler is manager of the Orbis Global Balanced fund

THE Winter Fuel Payment is paid at two rates with older people receiving £100 more than those closer to the state pension age.

The benefit is paid to help those over the state pension age of 66 with their energy bills over the winter months.

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It is worth up to £300 and was previously paid universally to all pensioners.

But from this year it will be means tested and only those on certain benefits will be eligible to receive funds.

Those on Pension Credit, Income Support, Tax Credits and Universal Credit remain eligible for the payment, but 10million are set to miss out.

The amount people receive through the payment depends on when they were born.

It is worth £200 for eligible households where all residents were born  between 23 September 1944 and 22 September 1958, or £300 for eligible households where someone is aged over 80.

To qualify for this year’s benefit, you must be 66 or over and have had an active claim for one of the qualifying benefits during what’s known as the “qualifying week” – this year, from September 16 to 22.

However, Pension Credit claims can be backdated by three months, so those who think they may be eligible for the benefit still have time to make a claim.

As long as claims are made by December 21, they will be able to access this year’s winter fuel allowance.

The changes to the winter fuel allowance have prompted faced a backlash from charities and campaigners since it was first announced.

Its impact was revealed when thousands of Sun readers flooded The Sun’s Winter Fuel SOS helpline earlier this month, looking for help to hang on to the payment.

The Sun has since launched a free tool to help you check whether you will get the winter fuel payment this year.

Even if you’re not eligible for the Winter Fuel Payment you may still be able to get £150 off your energy costs through the Warm Home Discount scheme.

There are two Warm Home Discount schemes – one for England and Wales, and one for Scotland.

Those living in England and Wales do not need to apply for the scheme, but those living in Scotland do.

Between now and December, the government will issue letters to households that qualify for the scheme.

However, to be eligible for the discount households must have had an active claim for any of the following benefits on Sunday, August 11:

There may also be help available through the Household Support Fund, which is administered through local authorities.

The fund is worth £421million and aims to help with gas, electricity, and food during the winter months.

To find out what support you could access contact your local council.

What is the Winter Fuel Payment?

Consumer reporter Sam Walker explains all you need to know about the payment.

The Winter Fuel Payment is an annual tax-free benefit designed to help cover the cost of heating through the colder months.

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Most who are eligible receive the payment automatically.

Those who qualify are usually told via a letter sent in October or November each year.

If you do meet the criteria but don’t automatically get the Winter Fuel Payment, you will have to apply on the government’s website.

You’ll qualify for a Winter Fuel Payment this winter if:

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• you were born on or before September 23, 1958
• you lived in the UK for at least one day during the week of September 16 to 22, 2024, known as the “qualifying week”
• you receive Pension Credit, Universal Credit, ESA, JSA, Income Support, Child Tax Credit or Working Tax Credit

If you did not live in the UK during the qualifying week, you might still get the payment if both the following apply:

• you live in Switzerland or a EEA country
• you have a “genuine and sufficient” link with the UK social security system, such as having lived or worked in the UK and having a family in the UK

But there are exclusions – you can’t get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain.

This is because the average winter temperature is higher than the warmest region of the UK.

You will also not qualify if you:

• are in hospital getting free treatment for more than a year
• need permission to enter the UK and your granted leave states that you can not claim public funds
• were in prison for the whole “qualifying week”
• lived in a care home for the whole time between 26 June to 24 September 2023, and got Pension Credit, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance

Payments are usually made between November and December, with some made up until the end of January the following year.

CHECK IF YOU QUALIFY FOR PENSION CREDIT

Pension credit tops up your weekly income to £218.15 if you are single or to £332.95 if you have a partner and can give you access to the winter fuel allowance.

This is known as “guarantee credit”.

If your income is lower than this, you’re very likely to be eligible for the benefit.

However, if your income is slightly higher, you might still be eligible for pension credit if you have a disability, you care for someone, you have savings or you have housing costs.

You could get an extra £81.50 a week if you have a disability or claim any of the following:

• Attendance allowance
• The middle or highest rate from the care component of disability living allowance (DLA)
• The daily living component of personal independence payment (PIP)
• Armed forces independence payment
• The daily living component of adult disability payment (ADP) at the standard or enhanced rate.

You could get the “savings credit” part of pension credit if both of the following apply:

• You reached State Pension age before April 6, 2016
• You saved some money for retirement, for example, a personal or workplace pension

This part of pension credit is worth £17.01 for single people or £19.04 for couples.

Pension credit opens the door to other support, including housing benefits, cost of living payments, council tax reductions and the winter fuel payment.

Claims for pension credit also open doors to a number of freebies and discounts.

For example, pension credit claimants over 75 qualify for a free TV licence worth up to £169.50 a year.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

Ninety One has announced that it will adopt the ‘Sustainability Impact’ label on its Global Environment Fund from 1 December.

The firm claims the fund will become one of the first to use this label under the Financial Conduct Authority’s Sustainability Disclosure Requirements (SDR) regime.

The fund is managed by Deirdre Cooper, head of sustainable equity, and Graeme Baker, co-portfolio manager.

The global equity portfolio provides exposure to the multi-decade structural growth opportunity from decarbonisation, driven by the need to transition to net zero.

The fund focuses on identifying businesses whose structural growth is driven by decarbonisation across three key pathways: renewable energy, resource efficiency and electrification.

Cooper said: “As an active, global investment manager, Ninety One’s goal is to provide long-term investment returns for its clients while making a positive difference to people and the planet.

“The Global Environment Fund’s unconstrained and focused approach, combined with a long-term investment horizon and active engagement, is a powerful way to invest in decarbonisation.

“The adoption of the ‘Sustainability Impact’ label by the Global Environment Fund is testament to our commitment to have a quantifiable carbon saving impact, enabling the transition to a net zero world.”

Ninety One, established in South Africa in 1991 as Investec Asset Management, is a global investment manager managing £127.4bn in assets.

The firm said it will be writing to the fund’s shareholders shortly with details of the updates to the prospectus, which are being made to align the relevant disclosures with the SDR.

The FCA’s sustainability rules for firms come into force on 2 December. However, the regulator recently offered firms flexibility and extended the deadline to next April.

The sustainability rules are designed to protect consumers by ensuring sustainable products and services they are sold are accurately described.

This will include model portfolios, customised portfolios and/or bespoke portfolio management services.

TESCO has brought back an iconic Christmas treat from the 80s, with shoppers claiming “I don’t care how much – I’m buying it”.

The retro dessert, returning to supermarket shelves after a four-decade hiatus, is on sale for £10.

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An alternative to traditional Christmas fruit cake, the Tunis Cake is a Madeira sponge, spread with a thick layer of chocolate.

It’s decorated with vanilla-flavoured icing in vibrant pink and orange colours, along with a trio of marzipan fruit.

After news spread of the long-awaited return, social media users rushed to share their excitement.

One particularly elated customer thought nothing of the £10 price tag, saying: “OMG I am buying this I don’t care! These always make me think of Nanny.”

Another echoed: “My mum brought for Christmas. Glad it’s back. Happy memories.”

Others described the nostalgic treat as “immense” and “a blast from the past”.

The Tunis Cake was a festive staple in the 80s, but its origins actually stretch all the way back to Edwardian times.

It was popularised in the 1930s, when Scottish bakery Macfarlane Lang’s put in British stores for the first time.

The company then merged with biscuit giant McVities, who continued churning out the cake until the 1980s.

Tesco‘s modern version is produced by bakery Say it with Cake.

It comes as another nostalgic product – by Cadbury’s – was also spotted at B&M stores this month.

Fans had feared the Fuse Bar had gone extinct years ago, before it reappeared in a miniature grab-bag version in the budget store.

One said: “I can’t believe the fuse is back! Its about time.”

Another wrote on Facebook: “Wow fuse! Need to get them haven’t seen them in a long time.”

How to save money on your food shop

Consumer reporter Sam Walker reveals how you can save hundreds of pounds a year:

Odd boxes – plenty of retailers offer slightly misshapen fruit and veg or surplus food at a discounted price.

Lidl sells five kilos of fruit and veg for just £1.50 through its Waste Not scheme while Aldi shoppers can get Too Good to Go bags which contain £10 worth of all kinds of products for £3.30.

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Sainsbury’s also sells £2 “Taste Me, Don’t Waste Me” fruit and veg boxes to help shoppers reduced food waste and save cash.

Food waste apps – food waste apps work by helping shops, cafes, restaurants and other businesses shift stock that is due to go out of date and passing it on to members of the public.

Some of the most notable ones include Too Good to Go and Olio.

Too Good to Go’s app is free to sign up to and is used by millions of people across the UK, letting users buy food at a discount.

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Olio works similarly, except users can collect both food and other household items for free from neighbours and businesses.

Yellow sticker bargains – yellow sticker bargains, sometimes orange and red in certain supermarkets, are a great way of getting food on the cheap.

But what time to head out to get the best deals varies depending on the retailer. You can see the best times for each supermarket here.

Super cheap bargains – sign up to bargain hunter Facebook groups like Extreme Couponing and Bargains UK where shoppers regularly post hauls they’ve found on the cheap, including food finds.

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“Downshift” – you will almost always save money going for a supermarket’s own-brand economy lines rather than premium brands.

The move to lower-tier ranges, also known as “downshifting” and hailed by consumer expert Martin Lewis, could save you hundreds of pounds a year on your food shop.

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The Social Security Disability Insurance (SSDI) program provides financial support to individuals who can no longer work due to long-lasting medical impairments. 

According to the Center on Budget and Policy Priorities, SSDI offers vital benefits that help disabled workers maintain a basic standard of living. As of April 2024, approximately 7.3 million individuals received disabled worker benefits from Social Security. 

The benefits also extended to their family members, including 86,000 spouses and 1.1 million children under the age of 18. However, navigating the financial challenges during the waiting period for SSDI benefits can be difficult. 

This article will outline effective financial strategies to manage this critical time while awaiting approval and benefits.

Understanding the SSDI Waiting Period

The waiting period for benefits can be a significant hurdle for applicants. According to AARP, in the late 2010s, the Social Security Administration (SSA) processed initial disability benefit applications within 110 to 120 days. 

However, during the first eight months of the 2024 federal fiscal year, this average ballooned to 230 days. This extended timeline can add considerable stress for those awaiting financial support.

Once an application is submitted, if it is denied, the first step in appealing is a reconsideration, which averages seven months. If this reconsideration is also denied, applicants face an additional wait of about 15 months before they can have a hearing. 

Social Security Commissioner Martin O’Malley noted that 30,000 individuals died in 2023 while their claims were still pending.

The approval rates for SSDI applications reflect these challenges. According to USAFacts, only about one in three processed disability applications was approved in 2022. Many denials stemmed from applicants not meeting the SSA’s non-medical or “technical” requirements. However, for those who did meet these initial criteria, the approval rate was approximately 53%.

Navigating this complex process can be difficult, which is where an SSDI lawyer can provide invaluable assistance. These legal professionals are well-versed in the intricacies of SSDI claims. 

According to Russell & Hill, these attorneys can gather essential medical records, clarify any gaps in your application, and represent you during hearings. With their expertise, SSDI lawyers significantly increase the likelihood of securing benefits.

Financial Strategies During the Waiting Period

Financial strategies for navigating the waiting period include:

1. Budget Wisely

Here are some steps to consider:

• List all income sources: Include any savings, part-time work, or assistance from family and friends.
• Track expenses: Monitor your expenses by identifying both fixed and variable costs. Fixed expenses include items like rent or mortgage payments and utilities, while variable expenses cover things like groceries and entertainment.
• Put essential needs first: Prioritize expenses such as housing, food, and medical care.

1. Explore Alternative Income Sources

While waiting for SSDI benefits, exploring alternative income sources can be invaluable. If your health condition permits, consider seeking part-time work that allows for flexibility around your medical needs. Certain jobs or remote positions may offer manageable hours, allowing you to earn supplemental income without exacerbating your condition. 

Vocational rehabilitation programs may also provide support, helping you develop skills or explore roles suited to your current abilities. These programs can sometimes connect you with retraining opportunities tailored to meet the demands of less physically demanding or more flexible jobs.

Crowdfunding has become another useful option for those facing financial challenges during the SSDI waiting period. Platforms like GoFundMe allow individuals to raise money with the support of friends, family, and even the broader community. 

Creating a campaign that explains your situation can draw in support from people who want to assist you in meeting essential expenses. Together, these alternative income sources can help bridge the financial gap, providing some relief while awaiting approval.

2. Use Community Resources

Many communities offer resources for individuals facing financial hardship. NerdWallet highlights the Supplemental Nutrition Assistance Program (SNAP) as a highly valuable resource. SNAP offers eligible individuals and families an electronic benefits transfer (EBT) card to help purchase food.

The National School Lunch Program also offers free or reduced-price lunches to students who qualify. This program can significantly reduce food costs for families with school-aged children.

You need to research local community resources, such as food banks, soup kitchens, and clothing closets. These organizations often provide essential goods and services to those in need.

Frequently Asked Questions (FAQs)

How long does it take to receive my first SSDI payment after approval?

Once your SSDI application is approved, a five-month waiting period applies before you receive your first payment. For instance, if your disability began on June 15 of a given year and you submitted your application on July 1, your benefits would start in December of that same year.

Can I work while waiting for SSDI benefits?

Yes, you can work while waiting for SSDI benefits. However, there are income limits. Exceeding these limits might affect your benefits. It’s crucial to consult with the SSA or a benefits counsellor to understand the specific rules and how they might impact your situation.

What should I do if my SSDI application is denied?

If your application is denied, don’t get discouraged as you have a right to appeal the decision. The appeals process can take time but may result in back payments if approved later. Consider seeking help from legal advocates who specialize in disability claims to improve your chances of success.

Managing finances during the SSDI waiting period requires careful planning and resourcefulness. By budgeting wisely, exploring alternative income sources, and utilizing community resources, you can navigate this challenging time more effectively. Remember that seeking help is not a sign of weakness; many resources are available to support you through this process.

In this week’s Weekend Essay, editor Tom Browne reflects on what lessons the media can learn from the US election results and the UK Budget.

From over-sensationalising political outcomes to the dangers of guessing in the absence of solid policies, Tom discusses how a more informed, sober approach is needed in today’s media landscape. Should the media focus less on polarisation and more on understanding voter behaviour?