Gold is often called an inflation hedge. Understanding how to calculate its real return (after inflation) separates genuine wealth preservation from wishful thinking.
Standard formula used by professionals worldwide
Bought gold at 50,000/tola, now 100,000 โ Nominal return 100% | If inflation was 80% over period โ real return 20%
Gold preserves wealth long-term but provides no income. Good diversifier but poor primary investment.
Historical system where currency value was tied to gold reserves. Most countries abandoned it by 1970s.
Karats: 24K = pure gold, 22K = 91.7%, 18K = 75%. Multiply weight by purity fraction to get pure gold weight.