Money
Rustless, trustless, shiny and tiny: Why we like gold
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
Money
‘That’s a bargain’ Tesco fans cry as they clear shelves of popular drink down to just 30p a can – but the deal ends soon
EAGLE-EYED shoppers have spotted a deal in Tesco that is too good to resist.
If you’re a fizzy drink fanatic you could be in for a Christmas treat as the popular retailer has slashed the price of a fan favourite.
You can pick up 15 Diet Cokes for £7.90 at Tesco but if you have a Tesco Clubcard you can grab two packs for £9.
This tots up to an impressive 30p per can.
One shopper snapped the deal and popped it on Facebook and users have been quick to tag their friends and family.
On the Tesco website users rushed to the comment section to gush about the pricing.
One wrote: “Excellent value and price for this product.”
Another added: “Great size of pack, and these are great for a slightly healthier alternative to a sweet treat.”
A third user joked: “I have Diet Coke running through my veins.”
The 330ml cans of Diet Coke are low calorie and no sugar, making it a healthier alternative to regular Coke.
Each can contains 1 calorie compared to a can of Coca-Cola Classic which contains 139 calories.
If you’re not a huge fan you can always swap out Coke for Pepsi, but watch out – the offer ends soon.
The deal is only valid until November 19 so make sure to stack up while you can.
Tesco is offering all sorts of Clubcard bargains this Christmas with some choccy treats on offer.
You can snap up a 550g of Cadbury Heroes Tub for £4.50 with a Clubcard, which is 25 per cent of the usual price.
For the perfect stocking filler if you fancy splashing out on posh chocolate you can also pick up some Green & Black’s Organic Tasting Collection Chocolate Gift.
This is down to £9 using a Clubcard from £13 and is 395g of chocolatey goodness.
If you’re keen to use your Clubcard but you think you may have lost your points, there is a way to get them back.
RECLAIM LOST CLUBCARD POINTS
Some people lose or forget to use their Tesco vouchers, but there’s a way to claw back the last couple of years of unused vouchers.
Here is exactly how to find out if you have any unused vouchers that you can claim.
The first step is to log into your Tesco Clubcard account on Tesco.com or through the Clubcard app.
You’ll need your name, email address and Clubcard number to hand.
Once you have logged in, navigate to “My Clubcard Account” and then click on “Vouchers” to see a full list of any vouchers you still have to spend.
Now you’ve spotted them you can use them at the still by scanning your phone, or you can add them to your based at online check-out.
What can I get with Tesco Clubcard?
TESCO’S Clubcard scheme allows shoppers to earn points as they shop.
These points can then be turned into vouchers for money off food at the supermarket, or discounts at other places like restaurants and days out.
Each time you spend £1 in-store and online, you get one point when you scan your Clubcard.
Drivers using the loyalty card get one point for every two litres spent on fuel.
One point equals 1p, so 150 points gets you a £1.50 money-off voucher, for example.
You can double their worth when you swap them for discounts with “reward partners”.
For example, £12 worth of vouchers can be swapped for a £24 three-month subscription to Disney+.
Or you can swap 50p worth of points for £1 to spend at Hungry Horse pubs.
Where you can spend them changes regularly, and you can check on the Tesco website what’s available now.
Tesco shoppers can also get Clubcard prices when they have the loyalty card.
The discounted items change regularly and without a Clubcard you’ll pay a higher price.
These Clubcard prices are usually labelled on shelves, along with the non-member price.
But it’s worth noting that just because it’s discounted doesn’t necessarily make it the cheapest around, and you should compare prices to find the best deal.
You can sign up to get a Tesco Clubcard in store or online via the Tesco website.
Money
Parents are being ‘ripped off’ by makers of baby milk & ban on discounting it ‘should end’
PARENTS are being ripped off by makers of baby milk — and the ban on discounting it should end, the competition watchdog has said.
Formula price has jumped between 18 and 36 per cent in two years, the Competition and Markets Authority has found.
It wants a shake-up of the market and is calling for retailers to be allowed to promote discounts.
They are currently not allowed to over fears of discouraging breastfeeding.
The CMA may still recommend government price caps on milk.
And it suggests the government brings in its own cheaper NHS-branded option.
The regulator said 85 per cent of the market is controlled by just two makers — Danone and Kendamil — so there is little incentive to compete on price.
Firms instead add on inflationary prices “quickly and in full”, it said.
CMA boss Sarah Cardell warned parents often chose infant milk in “vulnerable circumstances” and were led into opting for the most expensive brand out of concerns for their child’s well-being.
This is despite the “NHS advising it does not matter which brand you choose, they’ll all meet your baby’s needs, regardless of price”, Ms Cardell said.
She went on: “Parents have been shouldering the increasing price of formula for several years.”
Savings of £300 to £500 a year can be made by switching to the cheapest brand.
Asda slumps
THE chairman of Asda, Lord Stuart Rose, has admitted the supermarket “let a few basics of retail slip” as it suffered a 4.8 per cent drop in third quarter sales.
The grocer is still hunting for a permanent chief executive with Lord Rose saying it needed a “different animal” to co-owner Mohsin Issa, who stepped back in September.
Vistry error
SHARES in Vistry Group, one of the country’s biggest housebuilders, slumped by almost a fifth yesterday after it warned its account errors were worse than previously thought.
Vistry Group cut its profit guidance by £50million and said profits would be £165million lower over the next three years after understating the cost of housebuilding on 18 sites.
Good week
Bad week
Money
I won just £6,000 on the Postcode Lottery while my neighbour scooped £400k – but I had double the reason to celebrate
A LUCKY Postcode Lottery winner had double the reason to celebrate their £6,000 win.
NHS nurse Christine Graham wasn’t expecting to win big on her birthday.
The nurse from Fenham, Newcastle-upon-Tyne received a cheque for £6,146 on her birthday.
Christine said: “I’ll be using some of this to treat my two sisters and my daughter – maybe with a trip to Copenhagen!”
It comes after her neighbour Innis Gamble won more than £400k in the Postcode Lottery.
Innis celebrated after her postcode, NE4 9XU, was announced as the winner of October’s Postcode Millions prize, while 390 of her neighbours scored cash prizes.
The retired antiques dealer won £402,919 after she was diagnosed with stage 4 skin cancer last year. She hopes to receive the all-clear very soon.
Lucky winner Innis said: “The world has opened! I’m walking on air. I’m literally floating at the moment and Dave is holding me down, so I don’t float away.
“This money will change our lives forever. I really do feel like I have a guardian angel now.
She added: “I’m grateful to be alive. It started with a freckle on my arm which changed shape, so I thought, ‘I’ve got to go to hospital and get it checked.’
How to enter the People’s Postcode Lottery
- The Postcode Lottery is a subscription-based lottery in which players sign up with their postcode.
- Your postcode is your ticket number – 40p a day ensures entry into all drawers, or £12 a month.
- Once subscribed, they are automatically entered into every draw.
- Prizes are announced every day of the month.
- If your postcode gets luck, every player in your postcode wins.
- 33 per cent of the ticket price will go to charity that is re-funnelled back into the community.
“I had surgery to cut out the cancer from my arm but in October last year tests showed it had spread to my armpit, chest and stomach.”
Innis, who bears an S-shaped scar on her left arm, then started immunotherapy treatment for the cancer, which was successful.
She said: “Thankfully, it worked and I’m still here. I had my last scan last Saturday. I haven’t had the results back yet, but my last two scans have been clear.
“And now this has happened. I’m just waiting for the alarm clock to go off because it doesn’t sound real yet.”
The mum-of-two and her husband David now plan to write bucket list and start ticking it off.
wrote a bucket list together and now plan to start ticking it off.
Dave said: “It’s perfect timing when you get to our age. You build up a little bucket list, and we wrote one together. It can all happen now.
They also plan on taking a once-in-a-lifetime holiday to Thailand.
How to play the People’s Postcode Lottery?
For just £12 a month, players can sign up through the official website to have a chance of winning millions of pounds
Once signed up, players are automatically entered into every draw and prizes are announced every day of each month.
Tickets play for the Daily Prize, worth £1000 and revealed every single day.
Tickets could also win a jackpot of £30,000 for Saturday and Sunday’s Street Prize draws.
People’s Postcode Lottery also offers a £3million Postcode Millions draw each month – where your ticket plays for a share of the cash prize fund.
Winners are notified by email, text, post, or phone call, depending on the prize they win.
Jackpot winners are visited by the lottery team in person.
Money
Home Bargains is selling rare flavour Pringles and fast food fans will love it
FAST food fanatics have discovered a rare flavour of Pringles in Home Bargains.
The alternative treat has been spotted on the discount retailers shelves for less than the usual Pringles price.
For £1.59 you can check-out pizza themed Pringles, a flavour that’s received mixed reactions.
The crisps are meant to taste like a slice of pizza and have been described as having a strong tomato sauce and herb flavour.
A Home Bargains customer took a snap of the foodie find and posted it on Facebook.
One user tagged a friend and wrote: “Right up your street.”
Another responded: “Hell yes.”
A third user added: “Ooh yes please.”
Although not everyone was a huge fan of the idea with one comment simply displaying a “vomit” emoji.
The unique flavour has been around for years but they are often hard to spot on the shelves.
Thankfully, the elusive crisp has been tracked down in Home Bargains and is a good deal for 185g.
Most tubes of Pringles are priced at above two pounds in store, with £2.20 being the standard at Tesco and Morrisons, and £2.25 at Sainsburys.
Unfortunately, some of the top supermarkets no longer stock pizza flavour Pringles.
So if you’re keen for a cheese, dough, and tomato combo rolled into one mouthful you will have to look elsewhere.
Amazon and eBay both sell the rare snack as well as some other unique flavours.
You can grab specifically peperoni pizza flavour on eBay, or if you’re feeling daring even a ketchup themed tube.
If you need to see it to believe it, shoppers have also spotted cheese fries flavoured Pringles at B&M and beef fajita tasting ones from Poundland.
For those who want to delve into an even quirkier tube you can grab a packet of Prongles on the cheap.
The knock-off product was spotted on the shelf with a cartoon pig image rather than the recognisable mustached mascot.
However Pringles aren’t the only snack giant concocting new flavours – Walkers is launching a Texan BBQ and Pepperoni Feast flavour in Iceland.
The brand has teamed up with Pizza Hut to create the flavours that “replicate a bite-sized Pizza Hut pizza.”
As the crisps are artificially flavoured without real meat products, vegetarians can get in on the taste testing too.
Here’s how to cut the cost of your grocery shop
SAVING on your shop can make a big difference to your wallet. Here are some tips from Hannah Maundrell, editor of Money.co.uk, about how you can cut the cost of your shopping bills:
- Write yourself a list – Only buy items that you need. If it isn’t on your list, don’t put it in the trolley
- Create a budget – Work out a weekly budget for your food shopping
- Never shop hungry – You are far more likely to buy more food if your tummy is rumbling
- Don’t buy pre-chopped veggies or fruit – The extra they’ll charge for chopping can be eye watering
- Use social media – Follow your favourite retailers to find out about the latest deals
- Be disloyal – You may want to go to different stores to find the best bargains
- Check the small print – It’s always worth checking the price per kg/lb/litre when comparing offers so you’re making a like for like decision as a bigger box won’t necessarily mean you get more
- Use your loyalty cards – Don’t be afraid to sign up to them all. They all work slightly differently – work out what bonus suits you better and remember to trade in your points for additional rewards
Money
I tested 12 festive sandwiches including Aldi & Starbucks – the winner was a hearty handheld Christmas dinner under £4
IT is beginning to look a lot like Christmas – as festive sandwiches hit the shelves.
But which of the savoury bites are worth splashing your dough on?
Packed with turkey, stuffing, bacon and more, seasonal sarnies have become an annual tradition.
Lynsey Hope samples a selection from supermarkets and cafes to find out which ones are Christmas crackers.
Aldi Eat and Go Turkey Feast
- £1.99
- 521 calories, 16.8g fat, 7.5g sugar, 2.25g salt
- 4/5
ALDI has revised the recipe to this classic sandwich for 2024 – and it’s definitely better than before.
There’s more filling, with generous helpings of turkey and smoked bacon.
It’s not as moist as others, but the pork and sage and onion stuffing give it a nice flavour. There could have been more chutney, though.
Greggs Christmas Lunch Baguette
- £3.80
- 544 calories, 16g fat, 9.1g sugar, 2.3g salt
- 5/5
A GREAT option from Greggs, who describe it as a Christmas dinner “that can be held in one hand”.
The best bit is you get the taste without the faff of cooking.
It’s brimming with tender chicken, sage and onion stuffing, sweetcure bacon, Cheddar cheese and cranberry and red onion relish.
A very filling option for big appetites. Lovely, if you can resist the sausage rolls.
M&S Turkey Feast
- £4.25
- 531 calories, 17.6g fat, 8.5g sugar, 2.56g salt
- 3/5
A POPULAR choice every year, the M&S turkey feast returns for 2024 – and I’m pleased it has.
The bacon has a good smoky flavour, the turkey is juicy and there is a rich onion flavour to the stuffing.
I loved the combination of mayonnaise and cranberry sauce. But this did make it a bit messy to eat.
It was quite a salty flavour, too. However, the bread was nice and soft.
Turkey Lunch Sandwich, Morrisons
- £2.85
- 409 calories, 9.5g fat, 9.3g sugar, 1.76g salt
- 3/5
I LOVED the malted bread of this one and the turkey had a nice flavour.
The meat certainly wasn’t too dry. The sandwich is topped up with sweetcure bacon, sage and onion stuffing and cranberry sauce.
A lot of the filling was pushed to the front and the back was empty, so while a good price, it’s not as good value as it looks. Not as calorific as others, but high sugar content.
Asda Festive Feast
- £3
- 567 calories, 23g fat, 7.7g sugar, 2.6g salt
- 3/5
STUFFED full of turkey breast, sausages and smoked bacon, this is a meat-heavy sandwich.
There are clear layers of each filling, with its dominant meat flavour balanced by the tangy cranberry sauce for a solid all-rounder festive sandwich.
The bread is soft, which tasted nice, but fell apart a bit as I tried to eat it.
It is pretty calorific too, so more of a festive treat than an everyday lunch.
Costa Turkey Feast Sandwich
- £4.15
- 484 calories, 19g fat, 7.9g sugar, 1.9g salt
- 2/5
MIDDLE of the road here.
Nothing to shout home about but also no huge complaints.
The bread was nice, there is plenty of turkey but the sandwich itself was small and the bread a little on the thin side.
It is made with shredded turkey rather than slices, which made it feel a little bitty to eat.
Lots of bacon but there was not enough stuffing or much chutney.
Tesco Turkey and Trimmings Sandwich
- £3.40
- 453 calories, 9.9g fat, 7.1g sugar, 1.98g salt
- 1/5
QUITE turkey-heavy, with only a slither of bacon and a few slices of sausages.
The bread was a little dry and I wasn’t overly fussed by the turkey – it was dry and lacking in flavour.
The whole thing needed some chutney or sauce to elevate it.
There weren’t really many “trimmings”, as the packet suggests.
Price-wise, it’s not too bad value but Asda’s is cheaper, bigger and tastier.
Pret’s Christmas Lunch Sandwich
- £4.99
- 557 calories, 20.7g fat, 15g sugar, 2.25g salt
- 5/5
A standout option.
The slices of turkey were thick and moist while the cranberry sauce was lifted with port and orange flavouring.
The herby pork stuffing was delicious, and the added spinach gave this sandwich a fresh feel.
It was finished with a dab of mayonnaise and crispy onions on the best malted bread I tried.
An absolute Xmas cracker.
Starbucks ’Tis The Season Sandwich
- £4.45
- 416 calories, 9.3g fat, 7.2g sugar, 1.6g salt
- 1/5
THIS looked really perfect and neat and I couldn’t wait to tuck in, but it was a bit of a letdown.
I couldn’t taste the sage and onion stuffing at all and even when I pulled it apart, I struggled to find any.
While the sliced chicken was plentiful, with a nice flavour, the smoked bacon was too fatty.
The spinach leaves were a nice addition for a fresh feel.
But it didn’t taste very festive.
Sainsbury’s Festive Chicken Wrap
- £3
- 462 calories, 14.8g fat, 6.3g sugar, 1.22g salt
- 2/5
HEALTHIER than most others that were on offer.
But this Sainsbury’s option was a little bland.
The wrap itself was soft and floury and the whole thing was well filled.
But it was similar to a chicken and bacon wrap you could buy any other time of the year.
The stuffing flavour was subtle but there was nothing too festive about it.
By Amazon Turkey Feast
- £3.90
- 534 calories, 20.7g fat, 11.4g sugar, 2g salt
- 3/5
EVEN Amazon is getting in on the Christmas sarnie option – and in fairness, this isn’t too bad.
The bread was a little dry but the sandwich was well filled and a good size.
The turkey had a nice succulent texture and a lovely flavour.
You get a drink and snack for the price as part of the meal deal, too.
Waitrose Turkey, Stuffing and Bacon
- £4.50
- 428 calories, 9.4g fat, 7.4g sugar, 1.80g salt
- 4/5
A SIMPLE choice that isn’t too salty or sugary.
It was well filled with turkey and bacon though not as filling overall as some of the others.
I think you’d be hungry again not long after eating.
The ingredients were quality though, with moist, well-cooked turkey, smoky bacon and just the right amount of stuffing.
The cranberry and red currant chutney had a lovely, stand-out flavour.
But a little pricey for what you get.
Money
The rare marking on error 50p that makes it worth 100 times its face value – is one in your change?
A SMALL detail on this 50p has seen the value sky-rocket all because one small error.
This coin is selling for more than 100 times its face value because of printing mistake that left it with unique markings.
The Isaac Newton coin is a rare coin that has got collectors outbidding each other on eBay.
A rare coin guru who goes by the name coincollectingwizard said: “The Isaac Newton coin is one of the most popular 50ps in circulation.”
This coin appears to have several extra lines across the portrait of Queen Elizabeth.
The collector added: “If your coin has these lines then congratulations, have found it.
“Although we don’t know for sure how many of these error coins are in circulation, they are thought to be extremely rare.”
The elusive item has been listed on the secondary market for many times more than the face value.
It is thought that the markings on the coins were caused my an error during the striking process.
This is the step where blank coins are engraved with the designed images.
In a manufacturing problem known as “die clash” the front and back dies of a coin press together without a blank coin in between.
This leads to printing errors on the coin.
The extra grooves on this rare 50p are not grooves that have scratched into the coin but are lines that stand proud of the coin face.
Hopefully this means the unique pocket change will be easier to spot.
Other rare coins include the Olympics 2011 Aquatic 50p which can sell for thousands of pounds.
With only around 600 in circulation if you spot one with lines covering the swimmers face you could be in for some extra cash.
If you manage to get hold of the Gruffalo’s Child 50p, keep an eye on the creatures pawprint.
The coin with a misprint on the paws can sell for up to £42.99 on eBay despite being first available for £12.99
Make sure to check the back of the sofa for the famed 2009 Kew Gardens 50p.
This one has been a collectors dream for years and sells for up to £142 a pop.
CHECK IF YOU HAVE A RARE COIN
Rare coins and valuable notes can be worth far more than their face value – sometimes thousands of pounds.
But sometimes it’s just small differences that make them so lucrative.
The most valuable coins are often ones with low mintage numbers or an error.
These qualities typically make them valuable to collectors.
It’s always good to remember a rare coin is only worth as much as someone is willing to pay for it.
It might be that someone needs your coin to complete their collection, in which they may be willing to pay more.
SELLING YOUR RARE COINS
There are lots of different factors to consider when trying to value a coin, including its condition and mintage, so it’s important to do your homework first.
If you’ve got a potentially rare coin that you would like to sell at auction, you can contact The Royal Mint’s Collectors Service.
This organisation has a team of experts who can help you to authenticate and value your coin.
You will need to enquire via email, and a member of the valuation team will contact get back to you.
Take a picture of your coin and attach it to the email – you can find all the details on The Royal Mint’s website.
Be wary that you will be charged for this service though – the cost will vary depending on the size of your collection.
If you are looking to buy or sell a coin online through a marketplace such as eBay, it’s crucial to know exactly what you are purchasing.
This is because anybody can list a coin on eBay and charge whatever amount they wish.
You should also be conscious of fakes online – and keep in mind that on eBay a buyer could pull out, which means the coin won’t have sold for the price it says it has.
What are the most rare and valuable coins?
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