Officials in the global gold sector have warned of the escalation of gold smuggling operations to record levels, stressing that illicit flows of the precious metal have become a growing challenge to the international economy and security.
The CEO of the World Gold Council, David Tait, said that the value of illicit gold flows exceeded $120 billion annually, most of which comes from traditional mining, describing this phenomenon as a “crisis for the international community” due to its connection to conflicts, sanctions evasion and illicit financing.
Tait explained that the rise in gold prices, which nearly doubled over the past two years, contributed to increasing the attractiveness of smuggling and illegal mining, especially in areas witnessing conflicts such as Sudan and the Democratic Republic of the Congo.
For her part, the CEO of the London Bullion Market Association, Ruth Crowell, said that the rise in gold prices has made combating illicit flows more urgent, noting that the precious metal has become an attractive means of transporting illegal money across borders.
Gold has a feature that makes it extremely difficult to trace its source, as the alloys become chemically identical after refining, regardless of their origin, which allows the source of the metal to be hidden and integrated into official supply chains.
Official data show the expansion of the phenomenon globally, as the Indian authorities recorded 3,005 cases of gold smuggling during the fiscal year 2024-2025 ending last March, while confiscating about 2.6 tons of the precious metal.
In parallel, governments including the United States, the United Kingdom, and the United Arab Emirates are studying new measures to limit gold smuggling, including tightening controls at border crossings, strengthening tracking rules, and monitoring sources of supply.
The US Congress is also discussing a draft law aimed at developing a strategy to combat illegal mining and investigate gold smuggling networks, especially those linked to Venezuela.
Despite these efforts, sector estimates indicate that traditional mining represents about 20% of global gold production, while its share does not exceed 1% of the gold approved within the “good delivery” system in the London market, which means that the bulk of these quantities is heading to unofficial trading channels that are difficult to track.
In conclusion of the warnings, officials and experts called for broader international action, especially from the G7 countries, to strengthen legislation and security and financial cooperation with the aim of reducing gold smuggling and preventing its use in financing conflicts and organized crime around the world.
