The World’s Gold Producers Are Starting to Hoard Their Own Gold
Governments in Asia and beyond are taking steps to keep more mined gold at home by building refineries, taxing exports and having central banks buy domestic output, Nikkei Asia reports. The shift — described as a new form of resource nationalism — is driven by concerns about the dollar's standing and the risk that foreign-held assets can be frozen under sanctions.
Why It Matters
If sustained, this rerouting of gold from traditional Western refiners to domestic and regional channels could tighten global supply available to international markets and reinforce central banks' growing use of gold as an unfrozen reserve asset. That dynamic already underpins part of sell‑side forecasts for higher gold prices over the medium term.
Key Facts
- Laos 2025 mined output: ~12 tonnes (sixth-largest output in Asia)
- Laos estimated reserves: 500–1,000 tonnes
- Lao policy move: Launched Lao Bullion Bank in 2024 to refine local gold and increase gold's share of FX reserves
- Indonesia production: >100 tonnes per year (world's 10th-largest producer)
- Indonesia export tax: Up to 15% on gold, effective 2026; at $4,150/oz a 15% duty ≈ $620/oz
Across Asia, producers and policy makers are trying to capture more of the value chain for locally mined gold. Laos, which produced about 12 tonnes in 2025 and reports reserves between 500 and 1,000 tonnes, created the Lao Bullion Bank in 2024 to refine domestic output, boost gold holdings in FX reserves and provide local storage. Laotian leaders have framed gold development as an economic priority and international observers at the launch described the build‑out pace as striking. Indonesia has moved from policy to price incentives: the country, which produces over 100 tonnes a year, introduced an export tax that can reach 15% starting in 2026. At recent spot levels cited in the reporting, that top rate would amount to roughly $620 per ounce, a levy intended to limit outflows and favor domestic supply for local investors and reserves. Other nations are taking similar steps — Madagascar’s central bank has purchased domestic gold for reserve diversification since the early 2020s, and Ghana signed a memorandum with the World Gold Council in July to curb illegal mining and ensure national benefits from gold production. China, the largest producer in the world at about 380 tonnes annually, also restricts outbound gold flows and has been consistently adding to official reserves. The People’s Bank of China recorded a 20‑tonne addition in August, marking its 22nd consecutive month of net purchases; the central-bank total quoted in the report is 2,345 tonnes, up 20% since 2022 and 122% since 2015. Market analysts and refiners warn that as more supply is retained or rerouted within producer countries, international refiners — traditionally in London and New York — will find sourcing more difficult. Analysts link the policy shifts to broader reserve management trends that intensified after Russia’s foreign reserves were frozen in 2022. Data cited in the report show the dollar’s share of global FX reserves falling to 57% in 2025 (down over five percentage points since 2022), while surveys indicate 62% of reserve managers expect the dollar to decline moderately over five years and 84% expect gold to increase its reserve share. Firms including Metals Focus and sell‑side strategists have described the moves as a geopolitical response that is materially influencing central‑bank demand and, by extension, market forecasts for gold.