BlackRock's Evy Hambro has accused big gold miners of "reckless" spending on share buybacks, saying billions were committed without proper analysis. He still expects gold to keep rising over the long term as government debts mount.
At a glance
- Barrick, Newmont, AngloGold Ashanti and Gold Fields have approved buybacks worth about $12 billion.
- BlackRock owns 12% of Newmont, 10% of AngloGold Ashanti and 6% of Gold Fields.
- Hambro said rising government debt will keep eroding paper currencies, which supports gold.
Background
A share buyback is when a company uses its cash to buy its own shares, which can lift the share price and return money to investors. With gold up 112% in three years, miners have far more cash to spend. How they use it, on buybacks, dividends or new mines, is a growing debate among their largest shareholders.
What happened
Evy Hambro, global head of thematic and sector investing at BlackRock, the world's largest asset manager, criticised gold miners' buyback plans at the FT Mining Summit, MiningMX reported. He said companies were approving repurchases "without any real process".
"One of the things we've been really dismayed about in the last 18 months or so has been the reckless capital allocation towards share buy-backs in gold companies," Hambro said.
Why BlackRock is unhappy
Hambro compared buybacks with mine investments. Companies do far more work on $1 billion decisions to build new mines than on $1 billion decisions to buy back shares, he said. He also faulted the timing: firms announce big buybacks when share prices peak, then stop when gold falls back to $4,000 and shares are 40% cheaper.
The criticism carries weight. Barrick, Newmont, AngloGold Ashanti and Gold Fields have recently approved buybacks totalling about $12 billion. BlackRock's largest stake is 12% of Newmont, and it also holds 10% of AngloGold Ashanti and 6% of Gold Fields.
Still bullish on gold
Hambro remains positive on the gold price, despite its 112% gain over the past three years. He said heavy government debt and large deficits, with no plan to fix them, will keep eroding the purchasing power of paper currencies. Real assets should rise as a result, with gold among the biggest beneficiaries.
He expects interest rate moves, geopolitics and shifts in central bank buying to cause short-term swings. "But the trend is very much your friend," he said. He urged miners to keep their buyback plans flexible rather than make promises they might regret.
Our read
Outlook: bullish. A major investor reaffirming a long-term bullish view supports sentiment. The buyback criticism matters more for miners' shares than for gold itself.
What to watch
- Whether major gold miners scale back or rework their buyback programmes.
- How the miners explain their capital allocation in upcoming third-quarter results.
For information only, not investment advice.
Gold price in India
metalscost.com India reference price as of 2026-10-16.
Detailed analysis
Timeline
- 2026-10-15: BlackRock's Evy Hambro criticises gold miners' buybacks at the FT Mining Summit.
Demand Drivers
Hambro sees government debt and currency debasement as the main long-term driver of gold demand.
Central Banks
He listed shifts in central bank gold buying among the causes of short-term price swings.
What could lift prices
- The world's largest asset manager expects gold to keep benefiting from government debt growth.
- Large deficits with no plan to cut them point to further currency weakness, Hambro said.
What could weigh on prices
- Hambro said miners tend to stop buying back shares when gold falls back toward $4,000.
- Interest rate moves could keep gold volatile in the short term.
Country impact
| Country | Impact | Reason |
|---|---|---|
| United States | Low | Newmont, BlackRock's largest gold-miner holding at 12%, is among the companies whose buybacks are in question. |
Industry impact
| Industry | Effect | Reason |
|---|---|---|
| Gold Mining | Negative | A top shareholder is publicly questioning how miners spend their record cash. |
Who gains, who loses
- Long-term miner shareholders: Pressure for more disciplined spending could improve returns over time.
- Gold miner boards: They face public pressure from a major shareholder over their buyback decisions.
Other ways this could play out
- If miners respond, they could shift cash from buybacks toward new mines or flexible returns.
- If they ignore the criticism, shareholder pressure may grow at future annual meetings.
Price risks
- Higher US interest rates could push gold lower in the short term.
- A slowdown in central bank buying could weaken a key source of support.
Technical view
Price is trading below both its 20-period and 50-period moving averages, a bearish alignment.
Computed from metalscost.com's own stored price history.
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