Gold has historically preserved purchasing power over very long periods, making it an effective inflation hedge. However, it does not generate income like stocks or bonds, so its role is typically as a portfolio diversifier rather than a primary growth investment.

Yes. Physical gold requires secure storage and insurance, which can cost 0.5-1% of the gold's value annually. Add these cumulative costs to your initial investment for an accurate net ROI calculation.

Over the past several decades, stocks have generally outperformed gold in total returns. Gold tends to shine during periods of high inflation or market turmoil, often moving inversely to equities, which is why many investors hold both asset classes.