Why the gold boom is causing a rise in illegal mining

In difficult economic and geopolitical times, investors choose gold for its ability to store the value

Gold prices were at record highs last year, and some analysts predicted that the precious metal could reach its peak $3,000 an ounce By the end of 2025. But the boom has also been linked to the rise of illegal gold mining.

“What we found examination what we published is that more than 435 metric tons were smuggled out of Africa in 2022,” said Marc Ummel, Swissaid’s head of raw materials unit. “This corresponds to a value of more than $36 billion at the current price of gold. .”

Small-scale illegal miningKnown as Galamsey in Ghana, it provides a livelihood and an informal boost to the West African nation’s economy. It is also linked to environmental destruction and disease.

At least 87 illegal miners died in South Africa this week after becoming trapped in an abandoned gold mine southwest of Johannesburg, according to The Associated Press.

So what do investors need to know about how gold is obtained and will the price continue to rise? We traveled to Ghana to find out what illegal mining has done.

Watch the video to learn more.