Why would anyone invest in something that *just* keeps up with inflation, but shows no real gains at all over the long-term?

Because if you’re lucky (or good) you can time your entrances and exits to produce excellent returns. (Hence the many posts carefully choosing their time periods for performance.)

Of course you can do the same with stocks, and perhaps with a bit more precision. There have been long stretches when certain companies’ shares were stagnant, in spite of the growth of the business. WalMart and Microsoft come to mind, but I’m sure there are thousands of such examples (again, if you choose your date selection criteria carefully enough).

And unlike stock certificates, which in the 1930’s could have been used for wallpaper, gold has certain residual value. You could hammer it thin and use it to adorn an office with garish and unseemly decor, for instance.