Well no actually, because gold is at an all time high due to being bud up by speculators, whereas the FTSE has been on it's arse for a decade (1999 closing price was 6930, currently it's at a shade over 6000). If I'd stopped the return at the year 2000 it would have been more like 15% vs. 1% in favour of stocks. Also note that the FTSE has experienced 3 dramatic declines in that 21 year period - the Emerging Markets/LTCM debacle of 1998, the tech bubble bursting, and the 2008 financial crisis. Regular investments during this period for pound cost averaging would have boosted returns by another 0.5-1%. My concern with people buying gold is that they don't seem to have a strategy for it. They've seen the dramatic price increase and decided they'd like a piece of it, usually missing off that initial long tail where most of the gains are made. What exactly is your plan for closing out your position? I suspect it's something along the lines of attempting to time the market, which has been statistically proven to be impossible - especially so in your case if you hold illiquid, hard-to-get-rid-of-in-a-hurry physical gold. You can argue that gold is cash if you want, but at the end of the day it's all semantics. Whether you like it or not it is an investment, and the declines that are more than likely to come as gold mean reverts back to its historical 0% return (i.e. double-digit declines) will be just as real as the gains of the last decade.