Convert a nominal gold return into a real, inflation-adjusted return. This shows whether the growth in gold value outpaced the general inflation assumption you enter.
The real-return calculation is multiplicative rather than simply subtracting inflation. The second line shows the cumulative purchasing-power effect over the selected number of years.
A nominal rise in gold value does not automatically mean an equivalent increase in purchasing power. Comparing nominal growth with an inflation assumption provides a more meaningful view of what the return represents in real terms.
The inflation rate should correspond to the country, currency and period relevant to the analysis. A nominal gold return and an unrelated inflation measure can produce a misleading real-return result.
Not exactly. The mathematically correct annual real-return relationship divides the growth factors.
Yes, when inflation outpaces the nominal return.
No. Taxes and transaction costs should be incorporated separately when relevant.