Sentinel Investments’ Christian Thwaites discusses commodities with Bloomberg’s Alix Steel and claims that gold is not the asset class of choice, and that in times of deflation, cash preserves wealth better than gold.   Thwaites further claims that gold is almost totally a speculative driven commodity, and that investors should stay away from the speculative commodity, and stick with a proven winner like oil. 

Naturally, the interview was released just after gold had the wind knocked out of it with a 7,000 contract dump on the COMEX open that took the metal nearly $50 off recent levels.

Must. Scare. Sheople. Away. From. Hard. Assets.

Full propaganda interview below:

 

  1. And I have some swamp land in Florida you might be interested in!
    Give me a break-
    They keep rolling these clowns out –
    His stuttering at the beginning of the interview tells the whole story
    Pathetic!

  2. you know, since I woke up a few years ago ( I’m sure all you can agree ) I cannot fathom how I was ever dumb enough to buy people like this and their bullshit.
     
    I can’t wrap my head around how anyone with a hand full of firing synapses between their ears cannot see that we are living in a perverse charade of a society.

    • My senses say this supposed “seller of gold” has a massive personal stack as do most people on Bloomberg.  They just want to keep the sheep in their paper prisons.

    • Nothing he’s saying is factually wrong. In a deflationary environment cash is better than gold and silver. The market for gold and silver is driven by speculation just like currency, bond, and stock markets. It’s very easy to see how a person with firing synapses could think this way because it’s completely logical given the expectation that deflationary forces will win. I would guess inflation is the likely outcome, but there are very strong arguments by intelligent people on both sides. Rejecting arguments out of hand because they go against gold and silver prices makes us just as ill informed as the business as usual types.

    • I also cannot forget how dumb I was financially before I’ve discovered gold and silver’s fundamentals which was one year ago. The good part about it is that I didn’t know a lot financial stuffs at that time so I easily believed these fundamentals.

  3. This is sad, but it is safe to say that most ‘highly’ educated financial professionals these days still have an ingrained belief that ‘cash is king’ during a financial meltdown.  This belief is likely based on the previous period of Great Depression, when deflation made cash ‘valuable’.  More importantly, cash (the US Dollar) back then was officially redeemable for physical gold, so cash = gold (technically).  Later, Roosevelt made gold ownership by US citizens illegal (although not to foreigners).  Then they closed the ‘gold window’ to all in 1971.
     
    Today, cash is purely fiat paper, and holding fiat cash is nowhere equal to holding physical gold.  Fiat cash was NEVER meant to be for preservation of wealth.  Only real money gold and silver are able to properly perform that function (as borne out by thousands of years of human history).  So, it is very sad that so-called financial ‘professionals’ in this day and age have such little understanding of the true concept of real money.  Worse yet, they promote the idea that fiat cash is good money, when nothing could be further from the truth.

    • Actually, there is some more recent data that supports this position.  Look at the price of gold in 2008.  Like all other assets, it got clobbered when the market swooned.  At that particular time, cash WAS better than gold because it could be used to buy cheap gold after its price dropped.  While this is not the usual situation, there will be times when it is.  Other than that, I would be VERY happy to trade fiat for gold or silver at most any time.

    • A lot of economists these days are brainwashed and this is with my own experiences! On October 2012 at a special event, I’ve met an economist and I’ve asked him a few questions. I asked him if it is a good idea to own gold and said that paper gold is a good idea. He doesn’t know what fiat and money are.

  4. What irritates me about people like this is they eithre chose not to understand the reality of FIAT currency, being completely captured by that paradigm,  or they are  so very well compensated to spout  their clearly foolish observations, in spite of the risk that they will be seen for what they are–intellectual deserts, that they will say anything just to be seen and paid.
    Take a look at one first rate example, Jay Carney, WH Press secretary 
      His speaking skills are juvenile but quite fitting since no one can be seen as more eloquent than IL Duce 
    His predecessor Gibbs was equally devoid of speaking skills. Both fumble like drunks trying to talk their way out of a citation at a traffic stop.
      But the paycheck and proximity to the throne are things which overwhelm the desire to speak the truth. That’ s just the way it is.   I think Carney speaks so poorly because he is thinking about what he would like to say—call BS to the garbage that he is forced to state—-and the actual words that flow from his pie hole.  Poor schmuck. He will never live that down.
    So Thwaites is just one more ill informed dunce who will never find his way out of this world unless it crashes down on his head.  By then it will be too late

    • I just don’t get it. How can people put all their savings on pieces of paper in which their values can be created out of nothing and are man-made which means that the values of their savings can be corrupted because it can lose their purchasing power over time? This is actually a common sense that the majority of the people don’t have! :(

  5. This report reminds me of this “financial advisor” fool that came to our office to offer us financial management services to manage our toilet paper, and when I asked what about buying Ag & Au, the fool didn’t know how to respond and stuttered saying he llllllikes gold but doesn’t like silver at all, and then quickly changed the subject.
    I loved putting that guy on the spot.

    • Or when you are so far out of your area of expertise that you HAVE to fumble for words that can be seen as meaningful when they really aren’t.

  6. Actually during the times of deflation, fiat currencies doesn’t preserve wealth, they gain more values so they’ll also gain more purchasing power. Now currently, the Federal Reserve is doing its best to avoid deflation by doing QEs which give inflation. So during the times of inflation, gold preserves wealth better than fiat currencies.

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