Nonetheless though, we too own a substantial holding of gold, for reasons most recently set out in our 2004 Annual Letter to shareholders (www.sagecapital.com/edelweiss), and we have to demur with Mr. Landis upon several key issues. At the risk of over simplification, we should like to remind the reader of Jastram’s main conclusions, by citing the same passage as Mr. Landis, namely:
. Gold is a poor hedge against major inflations.
. Gold appreciates in operational wealth in major deflations.
. Gold is an ineffective hedge against yearly commodity price increases.
. Nevertheless, gold does maintain its purchasing power over a period of time.
