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

The article investigates the performance of gold as an asset class 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 COVID-19 pandemic. The tax-adjusted performance further underscores gold's advantages for long-term investors, highlighting its non-inflationary 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 tax-adjusted index returns of these indices, reinforcing its value for portfolio diversification and performance enhancement