Why the gold boom is causing a rise in illegal mining

In challenging economic and geopolitical times, investors are betting on gold for its ability to store worth.

Gold prices hit record highs last year, and some analysts predict the precious metal could reach $3,000 an ounce by the end of 2025. But the boom has also been linked to an increase in illegal gold mining.

“What we have found during the study What we publish is that in 2022 more than 435 metric tons of gold were smuggled out of Africa,” said Marc Ummel, head of raw materials at Swissaid. “At the current price of gold, this corresponds to a value of more than 36 thousand million dollars. “.

Illegal small-scale miningIn Ghana known as galamsey, it provides livelihoods 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 they became 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? Will the price continue to increase? We traveled to Ghana to learn about the impact that illegal mining is having.

Watch the video to learn more.