With gold prices up 27% year-to-date to $3,328 per ounce, local purchases are more cost-effective
Central banks are increasingly sourcing gold from domestic mines to grow reserves without depleting foreign exchange assets.
The World Gold Council reports that 19 of 36 surveyed central banks now buy gold directly from local small-scale miners using local currency—up from 14 last year.
Nations like Ghana, Tanzania, the Philippines, and Colombia are leading the shift. Buying domestically saves on international banking, refining, and transport fees while supporting local economies.
Traditionally, central banks pay for their gold in US dollars, euros, or sterling and get it from a London-centered market, but with gold prices up 27% year-to-date to $3,328 per ounce, local purchases are more cost-effective.
Though domestic gold often lacks global-grade refining, countries like the Philippines and Kazakhstan already meet global standards.
The trend reflects rising global debt and geopolitical risks, prompting central banks to seek stronger, diversified reserves.