Performance of the gold asset class compared to indices since the end of the Bretton Woods system

compared to major financial indices such as the S&P 500 and DAX
since the end of the Bretton Woods system in 1971. The study aims
to evaluate gold's role as a hedge against inflation and market
volatility, assessing its effectiveness as a stable investment during
periods of economic uncertainty. The research uses historical data to
examine annual and tax-adjusted returns and cumulative abnormal
returns to provide a comprehensive analysis of gold's performance
relative to these indices. The findings indicate that gold has generally
outperformed the S&P 500 and DAX, particularly in times of
financial crises such as the 2008 financial meltdown and the COVID19 pandemic. The tax-adjusted performance further underscores
gold's advantages for long-term investors, highlighting its noninflationary nature and limited availability. While the statistical
significance of gold's abnormal returns varies, its positive cumulative
abnormal returns (CAR) emphasize its robustness as an investment.
The research involves a two-sample t-test to compare the returns of
gold with those of the S&P 500 and DAX. The results reveal that gold
offers a significant positive return difference compared to the taxadjusted index returns of these indices, reinforcing its value for
portfolio diversification and performance enhancement.