Is gold still a hedge in 2026?

Gold's reputation as a safe haven is old. Whether it still earns that reputation is worth examining rather than assuming.

Why gold got the reputation

Gold produces no income and has no earnings to grow — its price moves purely on supply, demand and sentiment. Historically, that's made it behave differently to shares: when equity markets fall sharply on economic bad news, gold has often held up or even risen, because investors treat it as a store of value outside the banking and equity system.

Where the logic gets tested

That relationship isn't fixed. There have been periods where gold and equities have fallen together — usually when investors are selling everything to raise cash, regardless of asset type. Interest rates also matter: because gold pays no yield, it tends to become less attractive, relatively speaking, when cash and bonds are paying more.

How people typically use it

Rather than treating gold as a way to make money, many investors use it as a way to reduce how much a whole portfolio moves around — a small allocation that's expected to zig when other holdings zag, not the core of a strategy. You can hold it physically, through an exchange-traded commodity that tracks the price, or indirectly through mining company shares, each with different costs and risks.

Questions worth asking

How is the exposure actually held — physical, an ETC, or a mining company? What ongoing costs apply, such as storage or a fund's charges? And is the amount held small enough that its lack of income doesn't drag on the portfolio's overall growth over the long run?