BlackRock criticizes gold miners for 'reckless' share buybacks

Hambro, speaking at the FT Mining Summit, characterized current repurchases as undisciplined, noting that companies often commit to buybacks at market peaks only to abandon them when prices drop. He contrasted this lack of foresight with the intense scrutiny applied to new mine developments, suggesting that miners lack a coherent strategy for returning value to shareholders. The criticism carries significant weight given BlackRock’s status as a major stakeholder, holding substantial positions in giants including Newmont, AngloGold Ashanti, and Gold Fields.

Despite the friction over capital allocation, BlackRock maintains a bullish outlook on gold. The firm points to unsustainable government debt and fiscal deficits as primary drivers for the long-term depreciation of paper currencies, which historically bolsters real assets. While market volatility persists due to shifting interest rate expectations, BlackRock views the structural trend for precious metals as favorable. Alongside gold, the firm highlights silver as a strategic asset, noting that its dual role as a store of value and an industrial component in electronics and solar technology offers investors a distinct method to hedge against macroeconomic uncertainty.