Summary
- Gallup Shows Gold Sentiment Climbing
A recent Gallup poll shows nearly 1 in 4 Americans now view gold as the best long-term investment—yet physical bullion sales remain quiet. Classic case of sentiment leading price. - Gold Bullion Is Beating Classic Portfolios
Since 2020, gold bullion has outperformed the traditional 60/40 stock-bond mix. Anyone still ignoring bullion as part of their strategy is missing a growing global trend. - Buffett’s Long History with Silver
Back in the late '90s, Warren Buffett’s Berkshire Hathaway bought nearly 130 million ounces of silver—so much that it spiked lease rates to 70% annually. They sold in 2006, likely under pressure during legal negotiations. - Buffett’s Dad Was a Sound Money Guy
Howard Buffett, Warren’s father, warned in 1948 that abandoning honest money would lead to inflation, war, and loss of liberty. Timely advice, even more relevant today. - Gold vs Berkshire Since 2000
Gold has outperformed Berkshire Hathaway stock over the last 27 years—despite Buffett’s public criticism of gold. A quiet irony for precious metals folks. - Gold and Silver Nudged Up This Week
Silver closed at $32.70/oz and gold at $3,329/oz. The gold-to-silver ratio remains extremely high at 101—historically a big signal for silver to play catch-up. - Goldman Bullish on Gold, Bears on Silver
Goldman Sachs sees gold hitting $4,000+ by 2026, driven by central bank buying. But they’re down on silver, citing solar slowdown and recession fears. We’re not buying that argument. - Silver’s Supply and Demand Gap is Growing
Solar demand is expected to be half of annual silver consumption soon, while above-ground investable silver is still worth only about $330B globally—a drop in the bucket compared to broader markets. - New Portfolio Thinking: Add Bullion
FTSE Russell is now suggesting 20% of portfolios be allocated to bullion—reflecting central banks' moves since 2022. That’s a major shift from the old 60/40 model. - This Fiat Cycle Ends Like the Others
Every fiat currency in history has eventually failed. When they do, it’s bullion—gold and silver—that reprice the system. That revaluation is coming, and this time it’s global.
Market Report
That last comment was pretty ironic coming from someone who nearly two decades ago stated Warren's self-described rich class was waging ha-ha-ha wealth warfare over upper middle and lower classes. By paying lower percentages of taxes compared to that of his lowly secretary, compounding Warren's wealth got more dramatic over time.
Of course this compounding technique only works, so long as the underlying currency of denomination holds up its end of the value containment bargain. Well Warren in a few minutes will stammer through warning us all, the fiat US dollar currency has issues in the coming decades. And our current law making leaders are unfit for the challenge.
Any silver bull who has spent time researching the modern day post 1980 Hunt Brothers silver market knows that Warren Buffett and Berkshire Hathaway went largely long silver bullion to the tune of nearly 130 million oz in 1997 to 1998.
It was so much silver bullion that Berkshire was demanding for delivery at the time, their actions drove 1 month silver lease rate to over +70% per annum at the start of 1998.
Their buy and hold trade ended in early 2006 only roughly doubling their fiat gains, under a cloud of allegations where supposedly one of Buffett’s conglomerate holding companies engaged in illegal transactions with AIG back during the 2000s US housing bubble.
And further still alleged was that through market authority negotiations to follow with US financial authorities, the negotiations ended with Warren and Charlie Munger's Berkshire Hathaway selling their 129.7 million ounce pile of silver bullion to the start the still largest unsecured silver ETF called SLV.
What many onlookers do not know is that Warren Buffett's father former US Congressman Howard Buffett was a stanch sound money advocate following the second World War.
He ironically warned us in 1948, that element both here and abroad would continue enriching themselves through inflation and oppose any and all potential return to sound money.
He warned of surrendering our children and country to galloping inflation, war and slavery for without the restoration of honest money the survival of human liberty in the USA hung in the balance.
Warren Buffett's Berkshire Hathaway began being publicly traded at the perfect bear market bottom for US stocks around the year 1980. The USA's full financialization was about to kick into overdrive to outspend the Soviets into bankruptcy. And Warren compounding his company's gains was what followed.
The stock roared in real terms for its first 17 years, earning the respect of many long term stock investors and shareholders the world over.
But then the first US tech stock bubble crashed and with it over the last 27 years, his company's share value has only broken even versus gold bullion.
So the gold bullion that Buffett loves to publicly disparage has outperformed his company for most of the 21st Century.
And if his stammering coded warnings he made on his way out this week are any clue, my suggestion is the new incoming guy better start learning how to trade in emerging markets that actually have net trade surpluses and not $200 trillion or so in combined record sized debts and unfunded liabilities to come.
Thank you Warren, congratulations on an iconic run in US stock investing.
I'm just gonna take a quick look at the damning math again, and oh, I'll take the bullion owned outright privately over begin an unsecured Berkshire shareholder decades upcoming.
The silver and gold markets were both up slightly on the week.
The spot silver price finished at $32.70 oz bid while the spot gold price ended the week near $3,329 oz bid.
The spot gold silver ratio still at an eye-watering level of 101.
Goldman Sachs analysts dropped a Gold bull note this week while FUD'ing silver bulls with the claims that the spot gold silver ratio is staying higher for longer. They cited Chinese solar production now slowing amid oversupply, high recession risks, and central bank gold buying remaining strong in 2025.
They expect gold to continue out-glittering silver while also giving out gold price calls ranging from $3700 oz to $4500 oz by year end under varying tail risk scenarios and likely headed beyond $4,000 oz in next year 2026.
Historically gold didn't often need mass central bank gold bullion buying to run akin to such inane near no skin in the game shot call notes. Look back using 1972, 1978, 2006, and 2009 as a percentage move proxy and you will see $4000s oz gold by the end of next year is typical after gold price breakouts in percentage gain pasts.
The silver side the historical price catch-up rallies after gold's breakouts is there for you to see too. Final boss nominal $50 oz silver is likely to be be challenged next year 2026 if silver's past hasn't been erased because two bank analysts wanted a catchy headline to their thin research.
How do I know their research was trash? They had nerve enough to drag out an all time mined silver bar and pretend that more half of it isn't thinly spliced sitting unrecycled in trash dumps already.
When we speak about silver bullion and 90% silver in above ground inventories there is perhaps about $330 billion in notional value held amongst all investors the world over.
With a brand name like silver as money, with a typical 70% price correlation to gold, and often used as a beta bet on increasingly unaffordium gold. Three hundred thirty billion is next to nothing in comparison to all the overpriced bubbles still masquerading as value in this currency repudiation world upcoming.
We're on course to have solar becoming half or more of annual silver demand wordwide alone, with a store of value crisis by arithmetic dead ahead. And you want to tell me this rare spot GSR ratio level is not a final gift for silver bullion bulls loading up? I'll fade that 2026.
Speaking of others who have next to no gold nor precious metals bullion positions.
Gallup pole reveals near 1/4th of respondents no believe gold is the best long term investment, meanwhile US Mint sales of bullion coins are still weak. Bullion is totally under-owned an uncrowded retail trade for now.
UBS Family Offices are still not off their mere 1% allocation threshold according to recent reports by the bank. Surely it is more profitable for the Swiss bank to keep latter generational inheritors of wealth in other higher fee products, because as a fiduciary having no bullion positions now is a trash can model to real losses upcoming.
Speaking of trash models since 2020, the old 60/40 portfolio has been getting its head handed to it by gold bullion since 2020. So much so that now FTSE Russell, a subsidiary of London Stock Exchange Group, is publishing reports suggesting portfolio managers start taking some cues from record central bank gold bullion reserve buying since 2022.
Their published research this week suggest the new model is 60% stocks, 20% bonds, 20% bullion. And if money managers did that right now, by the time this decade ends I bet the gold position will have ballooned to near 40% of that proposed old is the now cutting edge new portfolio.
Owning over 1/5th of your liquid net worth in bullion vs US stocks and bonds has worked not merely since 2020 but try looking at the data running all the way back to 1968 when the last London price rigging scheme failed spectacularly into a 24 fold in spot prices the dozen years that followed.
The point is simple and one Howard and Warren Buffett know all too well.
Eventually all fiat currencies and the financial bubbles they create get re-accounted for by bullion revaluing sharply higher over promise piles.
This time it won't just be in the Western world, it will be across the globe.
That will be all for this week's SD Bullion Market Update.
And as always, take great care of yourselves and those you love.
