This is a wonderful article about investing in gold while thinking about the tax implications.
Gold has lured investors for centuries for its rarity and beauty, which explains why nearly half of gold demand worldwide is by the jewelry industry (World Gold Council, Gold Investor, Vol. 7, September 2014, page 8). Another 32% of gold demand is for gold bars and coins—gold bullion. An investment in gold bullion in 2004 would have provided a pretax annualized return of over 12% over the ensuing 10 years.
This return is not without its risks, however. Over the past several years, gold prices have dropped dramatically, and a 2012 investment in gold would have returned an annualized pretax loss of over 14%. The volatility of commodities including gold, however, is only part of the story.