Core Insights - Central banks are increasingly purchasing gold directly from local mines using local currencies, reflecting a growing appetite for gold among global central banks [1][2] - A recent survey by the World Gold Council indicates that 19 out of 36 surveyed central banks are currently buying gold directly from domestic small-scale miners, with four more considering this approach [1] - The trend is particularly notable in Africa and Latin America, with countries like Ghana and Tanzania implementing policies to ensure a portion of gold production is sold to their central banks [1] Group 1 - The World Gold Council highlights that central banks are turning to local gold purchases for multiple benefits, including lower prices, support for local mining industries, and the ability to increase gold reserves without depleting foreign exchange reserves [1] - In May, global central banks net bought 20 tons of gold, with 95% of central bank officials expecting an increase in their official gold reserves, up from 81% the previous year [2] - A record high of 43% of central bank officials plan to increase their gold reserves in the next 12 months, indicating a strong bullish sentiment towards gold [2] Group 2 - The shift towards local gold purchases is attributed to rising gold prices and its safe-haven characteristics, prompting gold-producing countries' central banks to buy domestic gold [2] - The recent surge in silver prices, with New York silver futures rising significantly, also reflects broader trends in precious metals markets [2]