There is More Demand for Gold Than the Miners Can Supply
Over the past 15 years global Gold consumption has risen by almost 1,000 tonnes a year, to about 4,300 tonnes, according to the World Gold Council (WGC), a London-based industry group.
Legal mining operations have not kept up with demand, so illegal mines controlled by criminal gangs, from the Amazon to central Africa, help cover the deficit, according to Verité, a non-profit watchdog in Amherst, Mass., that researches the illegal Gold trade.
A Y 2016 Verité study found that 5 countries in Latin America shipped 40 tonnes of Gold from illegal mines to the US in just 1 year, almost 2X the legal exports from those countries.
South America’s illegal Gold mines, most of them in the Amazon basin, are toxic pits in which mobs of laborers use fire hoses and mercury to extract nearly pure Gold nuggets from the Red Earth.
According to a finding by the United Nations, the industry thrives on child labor, devastates the environment, and enables prostitution at ramshackle camps around the mines.
The Gold moves from smuggler to smuggler, then into a network of refiners and traders, all feeding the world’s voracious demand for the precious Yellow metal.
Latest posts by Paul Ebeling (see all)
- Wall Street’s Key Stock Analysts Research Report - February 24, 2020
- President Trump’s “Your Fired” List has been Prepared - February 24, 2020
- Commentary: Paul Ebeling on Wall Street - February 23, 2020