Summary
- Scott Bessent’s Appointment: Scott Bessent has been tapped to lead the U.S. Treasury, presenting him with the challenge of managing a massive agency of over 100,000 employees while addressing global economic imbalances.
- Yield Curve Control and Banking Consolidation: Bessent faces complex tasks like implementing yield curve control policies and further consolidating the U.S. banking system.
- Investment Perspective on Gold: Bessent’s hedge fund, Key Square Capital Management, maintains significant investments in gold, reflecting a bullish outlook on the metal, often linked to macroeconomic strategies.
- Global Gold Reserves: Eastern European central banks are increasing gold reserves, while Russia set a precedent by amassing significant reserves before the 2008 financial crisis.
- Market Trends: Gold closed November above $2,650 per ounce, and silver remained strong above $30 per ounce, signaling robust long-term trends in bullion markets.
- Bullion vs. Bonds: Many central banks, especially in emerging markets, are shifting from U.S. Treasury bonds to gold, favoring bullion for economic stability.
- Wealth Transfer Planning: Warren Buffett emphasized the importance of transparent will discussions to avoid conflicts during the $84 trillion Great Wealth Transfer expected by 2045.
- Buffett’s Wealth Distribution Philosophy: Buffett plans to give away 99% of his wealth, leaving enough for his children to achieve independence but not excessive wealth, while redirecting funds away from the Gates Foundation.
- Financial Literacy and Inheritance Confidence: Surveys highlight generational gaps in financial preparedness, with many Millennials feeling ill-equipped to manage substantial inheritances.
Scott Bessent has apparently been tapped to be the next head of the US Treasury.
Hopefully he understands how to smoothly pull off coming yield curve control policies and the further consolidation of the US banking system ahead.
But according to the most recent filings with the Securities and Exchange Commission (SEC), his hedge fund Key Square Capital Management employs less than 25 people. The U.S. Treasury has more than 100,000 full time workers. So it is an understatement of gigantic proportions to simply say Scott's work is cut out for him in trying to close the current global economic system's unsustainable disequilibrium.
He recently claimed "The only way to preserve the benefits of the international trading system is to question some of its mistaken assumptions and update them for the current moment."
One of Mr. Bessent's largest investment positions is long gold, likely in some machination of derivatives and options.
Here is speaking to that in a recent clip regarding his gold bullishness this year in 2024.
Now that is apparently becoming common knowledge that Eastern European nations are amongst the world's largest gold bullion reserve buying central banks.
Is it not time to remind everyone yet again, that the Russian Federation front ran everyone even before the 2008 Global Financial Crisis in a first mover advantage setting up a massive sovereign gold bullion reserve position before the value of gold ballooned to where it is now?
Well, I hope you dear viewers are taking advantage of gold and silver spot price pullbacks and adding to your bullion reserves this Black Friday and coming Cyber Monday.
Before we return shortly I want to wish you and your a Happy Thanksgiving weekend and blessed coming Holiday Season.
The silver and gold market traded slightly down on the holiday shortened week.
The spot silver price finished the month of November still with a monthly spot price chart candle above the key $30 oz level closing at $30.53 oz bid.
The spot gold price closed the month above $2,650 oz bid with the spot gold silver ratio moving sideways still at 86.
This is the last 20 years of respective fiat US dollar gold and silver monthly spot price candles. Eventually silver follows broken out gold, so patience and stacking prudently remains the key for long term success.
While government central banks continue admit-tingly adding to their net gold bullion reserve positions while lowering their official purchases of US Treasury IOUs aka bonds and shorter term notes. The bullion over bond trade will likely continue as many emerging market eastern central banks go for bullion over bonds.
Let us check in with CNBC India and hear how they covered gold this week.
I want to take the last portion of this week's Bullion Market Update to check in with mass billionaire Warren Buffett and news that came out this week regarding his handing down of his massive fortune.
Many bullion stackers intend on handing down bullion as they age and pass along, and it is always worth considering plans for how to do so safely and securely in case accidents ever occur.
And while Bill Gates in 1997 went net long silver bullion via Berkshire Hathaway to the tune of 129.7 million oz, more than the Hunt Brothers amassed in bullion in the 1970s.
The mystery as to why he was stopped out from that position in 2006 only after a mere more than silver price doubling remains work we have published on our SD Bullion website.
He missed the post 2008 GFC more than spot price five bagger trough to peak.
His press this week regarding his Great Wealth Transfer read like so.
HEADLINE: Warren Buffett issues a warning for all parents ahead of the $84 trillion Great Wealth Transfer
Planning your will could make or break your family after your death, warns Berkshire Hathaway CEO and legendary investor Warren Buffett.
"Father time always wins. But he can be fickle,” the 94-year-old billionaire noted in an unusually candid letter released on Monday.
Conversations addressing one’s own death can be a difficult subject to broach. The logistics of what happens to our money and belongings can be an equally dreaded task. But ahead of the $84 trillion Great Wealth Transfer, Buffett asserts that there’s no sense in delaying the uncomfortable and risking future conflicts down the line.
“I have one further suggestion for all parents, whether they are of modest or staggering wealth. When your children are mature, have them read your will before you sign it,” he wrote.
Your will should be a dialogue, in the eyes of Buffett. He suggests that parents make sure their children understand “both the logic for your decisions and the responsibilities they will encounter upon your death.” Then a benefactor should answer said questions or concerns, “listen carefully, and adopt those found sensible.”
Buffett admits to doing as much with his kids over the years, and hearing their feedback and suggestions. “There is nothing wrong with having to defend my thoughts. My dad did the same with me,” he explained.
Many Americans treat money as a taboo topic within their families, but they don’t feel better off for it. Most (56%) say their parents never spoke of money with them, though a striking 81% believe that they would have benefited from having financial education at an earlier age, according to the Fidelity Investments State of Wealth Mobility survey.
Plagued by financial insecurity, younger generations are eagerly awaiting a Great Wealth Transfer—or inheritance from their older relatives. The changing of the tides will likely take place by 2045 and be worth about $84 trillion, Boston-based market researcher Cerulli Associates projected in 2022.
But as boomers and the silent generation prepare to hand off assets and savings, wrinkles start to form. Expectations can be out of alignment, with Gen Z and millennial offspring anticipating to receive more than their elders say they expect to leave behind, according to Northwestern Mutual in ITS Harris Poll survey of more than 4,500 U.S. adults.
And most Americans (72%) report that they don’t feel they have enough financial confidence to manage a large influx of money by themselves, per a Citizens Bank survey of 1,500 U.S. adults. Millennials especially report feeling a lack of confidence in managing a potential future windfall. But a little bit of preparation beforehand could perhaps ease the minds of the privileged young beneficiaries of the Great Wealth Transfer.
When wills go wrong
Things can quickly deteriorate after a family member dies. Grieving offspring are left to squabble with siblings about dividing up money and deciding who gets that ugly lamp no one seemed to care about until now. Surprises in a will only exacerbate the tension.
“Over the years, Charlie and I saw many families driven apart after the posthumous dictates of the will left beneficiaries confused and sometimes angry,” Buffett said, referring to his since-passed former business partner Charlie Munger.
“Jealousies, along with actual or imagined slights during childhood, became magnified, particularly when sons were favored over daughters, either in monetary ways or by positions of importance,” he added, explaining that he makes minor adjustments to his will and keeps it simple.
On the other hand, Buffett shared that he and Charlie witnessed moments where a well-discussed will helped a family become closer in the end. “What could be more satisfying,” he mused.
Really, it’s about a benefactor sharing all their insight before they’ve passed and can no longer share their perspective. “You don’t want your children asking ‘Why?’ in respect to testamentary decisions when you are no longer able to respond.”
The nation’s eyes are often on Buffett, whether he’s selling, buying, or simply sitting back and doing nothing. It’s no different when it comes to his planning for his fortune.
He’s famously pledged to give away more than 99% of his worth. While he at one point shelled out a large portion of this philanthropic effort to the Gates Foundation, Buffett has since seemingly soured on that partnership. "The Gates Foundation has no money coming after my death," he told the Wall Street Journal, adding that instead his wealth will go to a new charitable trust as managed by his three children.
This Monday’s statement revealed that Buffett is distributing an extra $1 billion to his family’s foundations. He claims to not want to “create a dynasty” when planning out his will. Rather his cornerstone is that “hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing.”
And so time goes onward no matter what the bullion we stack and save longterm will remain long after we are gone from this plane of existence. Plan prudently and accordingly always.
That will be all for our weekly SD Bullion Market Update.
And as always to you out there, take great care of yourselves and those you love.
