The Central Banks Who Became the Marginal BuyerNarrow moat
Barrick Mining (B) — moat facet
863 tonnes bought by institutions with no economic anchor under the decision -- price-insensitive in both directions, and able to stop by committee.
The most consequential buyers in Barrick's market are not jewellers or investors. They are central banks, which purchased 863.3 tonnes of gold in 2025 — historically elevated, geographically widespread, and roughly a fifth of total demand1.
Understanding what kind of buyer that is matters, because it is not a commercial one. A central bank buying gold is diversifying reserves away from other countries' currencies, insuring against sanctions and confiscation, and making a statement about monetary sovereignty. None of those motives has anything to do with gold's usefulness, its cost of production, or whether the price is attractive. These buyers are price-insensitive in both directions: they will keep buying into strength, and they can stop by committee decision without any change in the metal itself.
That is a genuinely strong support under Barrick's revenue while it lasts, and a demand base with no economic anchor underneath it. The 2025 figure was already down 21 percent from 1,092.4 tonnes the year before — still historically high, and slowing. The World Gold Council's own description was that purchases remain elevated but have moderated from their recent pace.
Nothing Barrick can do influences this in any way. It cannot sell to central banks preferentially, cannot lobby them, and does not know what they will do next.
The number to watch is quarterly central bank buying. A sustained fall would remove the largest single new source of demand created in the last decade, and it would arrive without notice.
Roughly a fifth of total demand, bought by institutions diversifying reserves and insuring against sanctions — motives with no economic anchor, so the buying is price-insensitive in both directions and can stop by committee. Watch quarterly official-sector purchases.
Source: World Gold Council, Gold Demand Trends FY2025 ↗- ReportedCentral banks and other institutions bought 863.3t of gold in 2025 against 1,092.4t in 2024, at the upper end of the expected range and described as historically elevated, geographically widespread, but slowed from their recent pace.World Gold Council, Gold Demand Trends Q4 and Full Year 2025 — total gold demand including OTC exceeded 5,000t for the first time, worth an unprecedented US$555bn (+45%), with the LBMA gold price setting 53 new all-time highs during 2025; the annual average price was US$3,431.5/oz (+44%) and the Q4 average a record US$4,135.2/oz (+55%). Supply: mine production a record 3,671.6t (+1%), net producer hedging -73.6t, recycled gold 1,404.3t (+3%) — described as a relatively muted response to a 67% increase in the US dollar gold price — for total supply of 5,002.3t. Demand: jewellery fabrication 1,638.0t (-19%) and jewellery consumption 1,542.3t (-18%) with jewellery demand value up 18% to a record; bar and coin 1,374.1t (+16%), a 12-year high; ETFs and similar products +801.2t against -2.9t in 2024, the second strongest year on record; central banks and other institutions 863.3t against 1,092.4t, at the upper end of the expected range, historically elevated and geographically widespread but slowed from their recent pace — FY2025 · publ. 2026-01-29 · source ↗