Emerging Nations Shift Toward Gold Resource Nationalism and Domestic Refining

Key Facts

1Emerging Asian nations are moving toward domestic gold refining and imposing export taxes to capture more value.

2Central banks in producing countries are increasingly purchasing local gold production instead of exporting it as ore.

Emerging Asian nations are moving toward domestic gold refining and imposing export taxes to capture more value from their natural resources. Nikkei Asia reported that this shift is part of a broader trend toward resource nationalism, as producing countries prioritize retaining local production over exporting it as raw ore to traditional global hubs.

Central banks in producing countries are increasingly purchasing local gold production to strengthen their national reserves, according to Oilprice.com. This structural change in the global gold trade occurs as these nations seek to reduce reliance on external markets, with central banks, including the PBOC, continuing to increase gold holdings while reducing international bond exposures.