Investment in gold - 2026 guide

Why is an investment in gold important

Gold plays a critical role in an investment portfolio as a diversification element. While stocks tend to fall significantly during financial crises or periods of high inflation, gold usually rises. Historical data shows that over the past 20 years, gold has delivered an average annual return of around 7-8% while serving as a hedge against inflation and currency crises.

Inflation in the eurozone reached a peak of 10-11 % in 2022-2023, when the list price of gold in euros fell by more than 30 %. For Czech investors this means a double effect: rising gold prices plus appreciation against the weaker koruna. Gold is also the only asset not dependent on the profit of a specific company or the economic situation of one country, its value exists independently of geopolitical events.

Physical ownership versus intangible forms

Physical ownership of gold (coins, bars) means you have direct control over the asset in your hands. It requires no financial intermediary. The price of physical gold is always 2-5 % higher than the spot price (daily current price) due to production and distribution. Intangible forms, ETFs, futures, mining company shares, offer greater liquidity and lower purchase costs, but you are not the owner of physical gold.

The choice between physical and non-physical gold depends on your strategy. Conservative investors who wish to hold gold indefinitely and value physical ownership should buy bars or coins. Speculators who monitor prices daily and aim for lower trading costs prefer ETFs or futures.

Historical performance of gold (2000-2026)

Since 2000, the price of gold has risen from ~250 dollars per ounce to the current ~2 200 dollars. This represents an increase of more than eightfold over 26 years, equating to approximately 8-9% annual return without dividends and without the need for reinvestment. Notably, during periods of low interest rates (2010-2019) and especially during the pandemic (2020-2021), gold reached its historical highs.

For the Czech investor, it is important to know that the price of gold in Kč is even more volatile due to exchange rate fluctuations between the koruna and the euro. Gold therefore serves as a hedge against inflation in koruna and against foreign currency risk.

Tax advantages of physical investment gold in the Czech Republic

Czech tax legislation provides a unique tax benefit for physical investment gold. If you own physical gold for more than 3 years and then sell it, you are not required to pay income tax on the gain. This is a fundamental difference compared to shares, real estate or silver. The condition is that you must be in physical possession of the gold (not via share certificates or futures).

Silver, on the other hand, is subject to 21 % VAT, whereas investment gold is exempt from VAT altogether. This makes gold the most tax-efficient form of investment in the Czech Republic. The combined savings on VAT and income tax when buying and selling gold for 1 million Kč amount to tens of thousands of Kč.

Risks and limitations of investing in gold

Gold does not generate cash flow (it pays no dividends and is not backed by any product). Its price is purely speculative, driven by supply and demand. During periods of sustained economic growth and high interest rates (see 1980-2000), the price of gold fell.

Physical gold carries the risk of theft. Home storage requires a high-quality safe (5-20 thousand Kč). Bank safes cost 0.5-1% of the value per year. Selling physical gold is time-consuming, sellers in the Czech Republic take a margin of 2-5% and the process takes at least several hours.

Another risk involves counterfeit gold. If you buy gold online, there is a small (but real) risk of a fake. Counterfeits are physically difficult to identify without laboratory testing. It is therefore important to buy gold from a trusted source with a certificate.

The Czech Mint: the largest seller

The Czech Mint (česka-mincovna.cz) is the official producer of Czech euro coins and the largest seller of physical gold in the Czech Republic. It offers investment bars (1-100g), gold coins, and well-known world coins. Prices are accurate and standard (spread +3 %). Online ordering, collection in Prague or Brno, or postage available. Collection times: 2-5 working days.

Argor: high-quality Swiss gold

The company Argor (grupo-argor.cz) manages Swiss gold bars and well-known brands (Argor-Heraeus). Quality guaranteed by certificate and serial number. Prices: higher spread (+4-5%), but absolute certainty of purity. Ideal for conservative investors who want bars with a guarantee.

IGR and other local retailers

IGR (ingot retailer) is a specialist in the sale of investment gold without VAT. Silver and gold ingots, certified, with buyback. Standard spread (3-4 %), prices updated daily. Physical location in Prague (Nové Město), online ordering with courier delivery.

Czech banks: KB, ČSOB, Moneta

All major Czech banks offer the purchase of physical gold. Advantages: security, insurance, easy storage in a bank safe. Disadvantages: higher price (spread +4-6 %), higher storage fees (1-1.5 % per year), less selection. Ideal if you want to keep gold in a bank vault.

Online shops and iAntar

A number of online shops (e.g. IAntar.cz, zlato.cz) sell physical gold and silver. Competitive prices, huge selection. Risks: transport security (I recommend an insured courier), counterfeits (check the certificate). When buying online, always verify reviews and certificates.

Foreign purchases: BullionVault, Goldmoney

BullionVault and Goldmoney platforms allow you to buy physical gold stored in foreign vaults (London, Zurich, New York). Advantages: best prices (spread +1-2 %), high liquidity, insurance. Disadvantages: digital ownership (not physical), currency risk, more complex tax record-keeping. More suitable for speculators.

Home safe: the most common choice

Purchasing a quality home safe (5-20 thousand Kč, depending on size and equipment) is one of the simplest solutions. The safe should have at least security class EL (electronic lock with battery) or higher. Remember to note down the password outside the household, losing the password means very expensive opening.

Advantages: full control, no storage fees, quick access. Disadvantages: theft risk, home insurance must be extended (typical limit is ~50 thousand Kč), contents safety not guaranteed in case of fire.

Bank vault: secure but expensive

A safety deposit box at your bank costs 0.5-1.5 % of the contents' value per year. For 100 thousand Kč in gold, this amounts to 500-1 500 Kč annually. Advantages: professional security, insurance, access during set hours. Disadvantages: high annual costs, no access outside bank opening hours, and you are not safe in the event of the bank's bankruptcy.

Private safes: third option

Some companies (e.g. SafeBox, Golden Gate) rent out private safes without being tied to a bank. The price is comparable to banks (0.75-1.5 % per year). Advantages: flexibility, 24h access, less bureaucracy. Disadvantages: lower company recognition, insurance may be weaker, higher risk of theft.

Storage at the retailer: a secure strategy

When purchasing physical gold, you can leave it in safekeeping directly with the seller (e.g., Česká mincovna, Argor). Price: 0.5-1.5 % per year + possible insurance premium. Advantages: automatic insurance, storage certificate; buying/selling is immediate when needed. Disadvantages: tied to the seller, market risk (if the seller goes bankrupt).