Why banks in some countries buy gold from the population
while in others they fundamentally refuse
Analytical Article
Date 29 January 2026
Introduction
Within the global financial system there exists a stable structural asymmetry
In some countries commercial banks categorically refuse to accept physical gold
In other states banks officially buy gold from private individuals and businesses
On the surface this appears to be a contradiction
In reality it reflects fundamentally different models of financial architecture
different roles of the state
and different statuses of gold within the monetary system
For a correct analysis it is necessary
to abandon a universal image of the bank
and to examine banks strictly within the context of each specific country
The Fundamental Logic of a Commercial Bank
A modern commercial bank by its nature
is not a store of value
It is
a node for recording obligations
an operator of payment infrastructures
a mediator in the redistribution of debt
Within this system
deposits are recorded as liabilities
loans as assets
money as entries in balance sheets and payment systems
Physical gold
is not anyone’s obligation
is not integrated into payment infrastructure
does not scale
does not generate interest income
From the perspective of classical banking logic
physical gold is a foreign element
The Liberal Banking Model
EU United States Canada Australia
In countries with a liberal financial architecture
the commercial bank operates as a private market actor
Physical gold in these jurisdictions
is not legal tender
has no standardised acceptance procedure
creates significant AML and sanctions risks
worsens balance sheet ratios
requires storage insurance and physical liability
Banks’ refusal to deal with gold
is not ideological
it is the result of regulatory and operational logic
China
A tightly managed model
China allows operations with physical gold
only within a licensed and centrally controlled system
Banks operate
under approved standards
with full traceability of origin
and strict linkage to exchange quotations
The state regards gold
as an element of national resilience
and as an instrument of strategic reserves
In this model the bank
is not an autonomous market participant
but an instrument of macroeconomic policy
Mongolia
A resource-based financial architecture
Mongolia’s economy is structurally linked to resource extraction
Banks accept gold
primarily from artisanal miners and small producers
conduct initial assessment
and pass the metal further along the chain
The objective of the state
is to bring gold out of the shadow economy
to concentrate the metal within the country
and to formalise resource flows
Here the bank
is an element of the infrastructure of the extractive economy
Thailand
A separated model
In Thailand gold is widely used
as a traditional form of savings
At the same time commercial banks
do not buy physical gold
The gold market exists
outside the banking system
through gold shops
jewellery houses
and private dealers
The banking system
deliberately distances itself from physical metal
Indonesia
A hybrid model
In Indonesia gold plays a significant role
in household savings
Banks work with gold
primarily through
gold accounts
certificates
and Islamic financial instruments
Physical metal
is accepted through specialised channels
or state-linked structures
Gold is integrated into the system
but not in the form of a traditional bank counter transaction
Mexico
A commodity-based logic
In Mexico physical gold
is primarily treated as a commodity
Commercial banks
generally do not buy gold from the population
Transactions are carried out
through dealers
refineries
and private trading structures
Even where gold mining exists
banks avoid direct contact
with physical metal
South America
Mosaic models
In South America
there is no single uniform scheme
In countries with developed mining sectors
gold is accumulated
through state channels
or specialised institutions
In countries with a more liberal financial model
banks distance themselves from physical metal
The common principle remains
gold is integrated
not as a banking asset
but as an element of state or resource policy
Africa
A continent of extraction and parallel systems
Africa occupies a special position
as one of the largest sources of gold globally
In many African countries
commercial banks participate in gold circulation
but not in the classical banking sense
Gold enters circulation
through artisanal miners
small producers
and semi-legal or informal channels
State bodies and refineries
use banks
as instruments of initial legalisation
record-keeping
and transfer of metal into the formal economy
Here gold
is not a banking asset
but an object of resource and export control
Russia
A state-oriented concentration model
In Russia commercial banks buy physical gold from the population
However this practice
does not arise from the market logic of a commercial bank
The bank is embedded
in a state financial architecture
in which gold is regarded as
a strategic reserve
an instrument of sovereign resilience
an asset outside international settlement systems
Historically the central bank
created a guaranteed gold purchase channel
allowing commercial banks
to transfer the metal into the state circuit
As a result the bank
does not accept gold as a market asset
but performs a concentration function
in the interests of the state
The Core Systemic Distinction
The difference between countries
lies not in their attitude toward gold
but in the role of the state within the monetary system
When the state
uses gold as a strategic instrument
banks can work with physical metal
When the bank
is a purely commercial intermediary
gold is pushed out of the system
In all cases
where banks buy gold
they cease to be exclusively commercial institutions
and become elements of a state
or resource-based architecture
Final Conclusion
Physical gold
by its nature
is poorly compatible with the classical commercial bank
Gold
is the language of physical reality
the language of ultimate value
the language outside obligations
The bank
is the language of numbers
the language of debt
the language of trust in the system
In liberal systems
the bank repels gold
In managed and resource-based systems
the bank allows gold
not as an asset
but as a function
This is not a contradiction
It is a reflection of the architecture of power over money