Asian gold producers adopt resource nationalism to retain value

Asian gold producers are increasingly adopting resource nationalism strategies to capture more value from rising metal prices. Rather than simply exporting raw ore or bullion, several nations are implementing measures to retain wealth domestically.

Key strategies include expanding domestic refining capacity, imposing export taxes, and increasing central bank purchases. For example, Laos aims to refine its output locally through the Lao Bullion Bank, while Indonesia plans to implement gold export taxes of up to 15% starting in 2026. Additionally, China’s central bank has maintained a significant streak of net gold purchases.

These shifts could potentially tighten global supply by reducing the amount of metal available to international refiners and the London market. While domestic refining does not automatically reduce global supply, the combination of export restrictions and sustained official buying by central banks may alter market dynamics and increase price sensitivity to demand.