January 2, 2026
Article from Financial Times by Leslie Hook
Article Synopsis
The article examines how soaring gold prices have intensified illegal mining and smuggling, prompting countries such as Madagascar, Ghana, and Ecuador to involve central banks in domestic gold-buying programmes. In Madagascar, where nearly all gold is smuggled out, the central bank aims to curb trafficking, boost reserves, and ensure the sector benefits the national economy.
While such programs can improve transparency, reduce environmental harm, and increase foreign exchange, they face challenges around traceability and the risk of buying illegally mined or conflict-linked gold. Successful examples, like Mongolia, show that with strong oversight and technology, centralized buying can help formalize artisanal mining and limit criminal involvement.
