Turn a multi-year or multi-month gold return into an equivalent annualized growth rate. This makes returns from different holding periods easier to compare.
The annualized rate is mathematically equivalent to a compound annual growth rate for the entered period.
A total return without its time period can be difficult to compare with another result. Annualization puts the result onto a yearly scale, while preserving the original starting and ending values.
The calculation summarizes the entered historical or hypothetical period. It does not imply that the same annual rate will continue in the future.
Yes.
Yes. That is what distinguishes a compound annualized rate from a simple average return.
You can compare the calculated annualized rates, provided the underlying return definitions are comparable.