Gold-Producing Nations Hoard Output to Support Long-Term Price Growth
Gold-producing nations, including Laos, Indonesia, and China, are adopting measures to retain more of their gold output domestically. This trend, described as resource nationalism, involves domestic refining, export controls, and purchases for national reserves. The shift could tighten global gold supplies and support higher prices in the long term. Weakening confidence in the US dollar is also driving these countries to accumulate more gold.
Gold prices have surged significantly over the past three decades, rising from $1,000 per troy ounce in 2008 to a record high above $5,500 in January 2026. While prices have since retreated, they remain above $4,000. The rise in gold prices has increased the value of producers’ underground resources, prompting mining nations to question why they should primarily receive proceeds from selling raw ore while refining and trading benefits accrue overseas.
Laos is building refining capacity and a domestic bullion market to retain more value from its gold deposits. The country produced about 12 tonnes of gold in 2025 and estimates it has between 500 and 1,000 tonnes of reserves underground. Laos established the Lao Bullion Bank in 2024 to expand refining capacity and provide a trusted market for citizens to buy and sell gold. The bank also aims to increase gold’s share of the country’s foreign exchange reserves.
Indonesia has imposed a gold export tax of up to 15%, while China is expanding its gold reserves. China, the world’s largest gold producer, mines over 380 tonnes annually. The People’s Bank of China added about 20 tonnes to its reserves in August 2026, marking its 22nd consecutive month of net purchases. Madagascar’s central bank is also buying domestically produced gold to increase its reserves. Ghana, the world’s sixth-largest gold producer, has signed an agreement to tackle illegal mining and strengthen its gold supply chain.