Gold has had an exceptionally strong run. In 2026, it is trading near historically high levels, central banks continue to buy it, and investors see it as protection against uncertainty. That is exactly why the question of whether gold investing still makes sense today is more complicated than ever.
Gold is one of the assets that returns to the spotlight in times of market nervousness. When investors fear inflation, geopolitical conflicts, a weaker dollar or falling stock markets, they often look for a safer haven. Gold has played that role for centuries. But 2026 brings one major complication: gold is no longer cheap.
According to the World Gold Council, the average gold price in the first quarter of 2026 reached a record 4,873 dollars per ounce and climbed to an all-time high of 5,405 dollars per ounce in January. Even after the subsequent correction, gold remains expensive. Reuters reported on 25 May 2026 that the spot price was around 4,559 dollars per ounce.
Why has gold become so expensive in 2026?
The rise in the gold price is not driven only by the emotions of retail investors. A combination of several factors has played an important role: geopolitical tensions, inflation concerns, fluctuations in the US dollar, uncertainty around interest rates and continued central bank purchases.
In its report for the first quarter of 2026, the World Gold Council stated that total gold demand, including over-the-counter transactions, rose by two percent year on year to 1,231 tonnes. Thanks to the sharp price increase, however, the value of this demand jumped by 74 percent to a record 193 billion dollars. Demand for bars and coins was especially strong, reaching 474 tonnes, the second-highest quarterly result in history.
Central banks also continue to buy gold. In the first quarter of 2026, they purchased a net 244 tonnes of gold, according to the World Gold Council, more than in the previous quarter. One of the notable buyers was the Czech National Bank, which added five tonnes in the first quarter, according to WGC.
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Gold investing as protection, not as a miracle return
The key question is therefore not simply “will gold keep rising?”, but rather “what role should gold play in a portfolio?”. For investors, this is crucial. Gold is not a stock that pays a dividend. It is not a bond that pays interest. It does not produce anything by itself. Its value is based mainly on scarcity, trust, demand and the market’s willingness to see it as a store of value.
That is why gold investing makes the most sense as a stabilising element in a portfolio. It can help when stocks fall sharply, inflation erodes the value of money, or investors lose confidence in currencies and government bonds. But gold is not an instrument from which an ordinary investor should expect quick wealth.
In 2026, this caution is even more important. The gold price has already risen significantly in recent months, so an investor buying today is entering the market after a strong rally. That does not mean gold cannot continue to rise. It does mean, however, that the risk of a short-term correction is higher than when gold was overlooked and cheaper.
What supports gold in 2026?
The main argument in favour of gold is uncertainty. The global economy enters 2026 with a number of open risks: geopolitical conflicts, pressure on public budgets, increased currency volatility and the question of how long interest rates will remain at higher levels.
Reuters notes that while some major banks have recently lowered their short-term forecasts due to weaker investment demand and higher bond yields, most analysts remain positive on gold in the medium term. According to Reuters, JPMorgan expects the gold price could approach 6,000 dollars per ounce by the end of 2026 if investor and central bank demand strengthens again in the second half of the year.
Another argument is diversification. Gold often does not behave in the same way as stocks. When markets fall because of fear, political tension or a loss of confidence, gold can support part of a portfolio. Not always and not automatically, but historically it has often fulfilled this function.
In the Czech Republic, physical investment gold also has a favourable tax regime. Under the special regime in the VAT Act, investment gold is exempt from value-added tax. For private individuals outside business assets, the sale of investment gold in the form of bars or investment coins is generally treated as the sale of movable property and may be exempt from income tax. However, different rules may apply to entrepreneurs, derivatives, CFDs or some exchange-traded products.
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What argues against gold?
The biggest risk is the price. In 2026, gold is popular, expensive and widely watched. That alone is not a reason not to buy it, but it is a reason not to buy without a plan. Anyone who puts a large part of their savings into gold after record growth may be disappointed if several months or even years of stagnation follow.
The second risk is interest rates. Gold does not generate any ongoing yield. When interest rates are high and safer bonds or savings products offer attractive returns, some investors may prefer assets that generate regular income. Reuters points out that higher rates tend to put pressure on gold because they increase the appeal of yield-bearing assets compared with a metal that pays no interest.
The third risk is cost. With physical gold, investors pay the difference between the purchase and buyback price, have to deal with secure storage and must take into account that smaller bars usually carry higher premiums. With exchange-traded products, they pay management fees and bear the risk of the specific financial instrument. Gold mining stocks are not the same as gold either. In addition to the metal price, they are affected by company management, costs, debt, political risk and the broader stock market.
Physical gold, ETF/ETC, or gold mining stocks?
An ordinary investor has several options. Physical gold in the form of bars or investment coins is the easiest to understand. The investor truly owns it, is not dependent on a broker and can hold it long term outside the financial system. The disadvantages are higher purchase premiums, lower liquidity compared with exchange-traded products and the need for secure storage.
Exchange-traded products linked to gold are more practical for investors who want to buy and sell quickly through a broker. They are more suitable for a financial portfolio than for people who want to hold the metal physically at home or in a vault. However, it is necessary to watch the product structure, fees, currency and tax regime.
Mining stocks can offer higher potential when the gold price rises, but also significantly higher risk. They are not a pure bet on gold. A mining company may face operational problems, higher costs, licensing complications or weaker results even if gold itself is rising.
How much gold makes sense in a portfolio?
For most ordinary investors, it does not make sense to build an entire portfolio around gold. It is more reasonable to view it as a supplement. Investors often talk about single-digit percentages of a portfolio, or a higher share for more conservative investors who mainly want to protect their wealth against extreme scenarios.
It is also important not to buy all at once under the influence of a headline about a record price. In practice, it may make more sense to spread purchases over time. This reduces the risk of entering the market exactly at a local peak.
So, is gold a good investment in 2026?
Yes, but not for everyone and not at any price. Gold investing in 2026 makes sense mainly as long-term protection for part of one’s wealth and as insurance against uncertainty. Strong central bank purchases, geopolitical tension and inflation concerns remain factors that could continue to support the gold price.
At the same time, however, gold has already completed a large part of its rise. Investors should therefore not buy simply because “gold is rising now”. They should know why they are buying it, how long they want to hold it, which form they will choose and how large a part of their portfolio they want to allocate to it.
