In challenging economic and geopolitical times, investors bet on gold for its ability to store value.
Gold prices hit record highs last year, with some analysts forecasting the precious metal could reach $3,000 an ounce by the end of 2025. But the boom has also been linked to a surge in illegal gold mining.
“What we have found during the study that we published is that more than 435 metric tons of gold was smuggled out of Africa in 2022,” said Marc Ummel, head of unit raw materials at Swissaid. “At the current price of gold this corresponds to a value of more than $36 billion.”
Small-scale illegal mining, in Ghana known as galamsey, provides livelihoods and an informal boost to the West African nation’s economy. It is also linked with the destruction of the environment and illness.
In South Africa, at least 87 illegal miners died this week after they were 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 sourced, and will the price continue to soar? We traveled to Ghana to find out what impact illegal mining is having.
