Real property carried at low interest rates can be even a better hedge, and some of each better still. Gold can zig when other things zag and be worth a modest position for that reason, or as catastrophe insurance. But as a long term store of value it isn't as good as currency lent at interest.
the entire premise is a presumption about the dollar or, indeed, any fiat currency, one that is dubious.
You meant to say that "With the interest collected included, loans to insured banks or loans to the US treasury held their value in real terms if you don't count income tax paid but was less than the returns on physical gold leased/loaned out to financial markets... Sure the return on gold stuffed in the mattress is higher than bills stuffed in a mattress.
“But as a long term store of value it isn’t as good as currency lent at interest.”
If Obama wasn’t president, I would agree, but during the next four years, I am guessing that gold will blow the dollar into the weeds, and depending on how much damage Obama does, it might continue to do so very long into the future.
Interest was paid on gold deposits prior to the 1933 confiscation, although rates under the gold standard were fairly low. So, the only real reason gold doesn’t pay interest is because the government forbade it! I’m no goldbug, but thems the facts.