Why has gold got so expensive?
In early 2026, the price of gold hit an all-time high. BBC Learning English's '6 Minute English' explores why gold has held its value for thousands of years — and why modern investors and central banks are still rushing to buy it, drawing on expert testimony to explain the forces behind gold's enduring appeal.
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What this episode answers
Why did gold originally come to be used as money?
Before coins and electronic money, currency was literally gold itself, with gold coins found by archaeologists dating to the 6th century BC. Unlike livestock or timber, gold was small, light, and far easier to carry and exchange, making it a universal medium of trade.
Why is gold called a 'safe haven' asset?
Gold is a neutral asset not tied to any particular country, government, or economy, which is why commodity analyst Suki Cooper says it is 'recognised as a store of value over the long term.' Unlike currencies such as the dollar or pound, gold is not directly exposed to any single country's political risk, giving it its safe-haven status.
How does gold's limited supply support its price?
Gold cannot be created from nothing — not even through alchemy — and there is a physical limit to how much can be mined, a constraint that economic and social historian Professor Catherine Schenk says 'sustains the underlying value behind demand.' Because it cannot be printed like banknotes, rising demand automatically pushes the price up.
Why did gold prices hit an all-time high in 2026?
A series of global events converged — wars in Ukraine and the Middle East, plus tariffs imposed by the United States on international goods — driving central banks around the world to increase their gold purchases, pushing prices to a record high in January 2026, though prices have eased somewhat since then.
Why does gold remain popular in the digital age?
Market strategist John Reed notes that much of the world we live in is 'ethereal' — virtual, online, and transient — and argues that gold's solidity and reliability generate a strong 'hankering' for it; in an era of rapid digital change, experts see gold's physical reality and permanence as a draw for those seeking a return to traditional values.
Gold's history as money
Hosts Phil and Georgie begin by looking back at gold's historical role. Long before modern coins or electronic payments existed, currency was, quite literally, gold. Archaeologists have discovered gold coins believed to date to the 6th century BC, confirming the metal's long history as a medium of trade. Compared with goods such as livestock or timber, gold was small, light, and far easier to carry and exchange. That portability made it a universal store of value — and it is the most fundamental reason gold became money in the first place.
Gold as a 'safe haven' — why it holds up in a crisis
We no longer use gold coins for everyday purchases, but gold remains a vital financial asset. In the programme, commodity analyst Suki Cooper, speaking to BBC World Service, explains why clearly: 'Gold is not tied to a specific government, a specific economy, or a specific market. It is that neutrality which means it is recognised as a store of value over the long term.' Unlike currencies such as the dollar or the pound, which can be buffeted by one country's political and fiscal risks, gold functions as a cross-border safe haven — a refuge whose value does not depend on the fortunes of any single nation.
How limited supply underpins gold's price
Another defining feature of gold is that its supply simply cannot be increased at will. As economic and social historian Professor Catherine Schenk explains: 'Gold cannot be created from nothing, not even through alchemy. It is that control of supply which sustains the underlying value behind demand.' Alchemy — the ancient chemical pursuit that sought, among other impossible feats, to turn ordinary metals into gold — never worked, of course. In reality, gold can only be extracted from the ground, and according to a quiz in the programme, the total amount humanity has ever mined exceeds 200,000 tonnes. Because gold cannot be 'printed' the way banknotes can, any rise in demand pushes the price up naturally.
The 2026 record high — what drove it
In early 2026, gold prices reached an all-time high. Phil explains that the backdrop was 'a series of global events': wars in Ukraine and the Middle East, and tariffs imposed by the United States on international goods. Each new bout of political and economic instability prompted central banks around the world to step up their gold purchases, driving prices higher. Since the January peak, however, prices have fallen back somewhat. Even so, experts believe that as long as an era of uncertainty persists, gold will remain an attractive investment.
The 'weight and feel' of gold — rediscovered in the digital age
The final guest, market strategist John Reed, offers a cultural analysis of gold's stubborn popularity in the modern world. 'Much of the world we live in is ethereal,' he says — virtual, online, and liable to disappear. Gold, by contrast, is solid, trustworthy, and perhaps a little old-fashioned, and Reed argues that it is precisely those qualities that generate a strong 'hankering' for the metal. In a society changing at digital speed, gold's physical reality and permanence resonate with a desire to return to something enduring and tangible.
Takeaways
- Gold has served as currency since at least the 6th century BC, and its status as a safe haven rests on its neutrality — it is not tied to any single country, government, or economy.
- Because gold cannot be mined at will and cannot be printed like banknotes, any increase in demand translates directly into higher prices.
- The all-time price record set in early 2026 was driven by a convergence of global crises — wars in Ukraine and the Middle East and US tariff policy — which pushed central banks worldwide to buy more gold.
This article is edited from a machine transcript of the first 30 minutes of the episode. It is not an official summary — please listen to the episode itself.