During tough economic and geopolitical times, gold is a go-to investment for those looking to preserve value. Over the past year, gold prices have reached unprecedented levels, and some experts predict the precious metal might hit $3,000 per ounce by the end of 2025. However, this surge in value has unfortunately been accompanied by a rise in illegal gold mining activities.
Marc Ummel, who leads the raw materials unit at Swissaid, commented on a recent study revealing that over 435 metric tons of gold were illicitly smuggled out of Africa in 2022. “With gold’s current valuation, this translates to more than $36 billion,” he noted.
In Ghana, illegal mining—locally known as “galamsey”—offers both a means of subsistence and an informal economic boost for communities. Nevertheless, it’s also notorious for causing environmental degradation and health issues.
Adding to these concerns, a tragic incident occurred in South Africa, where at least 87 unauthorized miners lost their lives after becoming trapped in an abandoned mine near Johannesburg, as reported by The Associated Press.
With these challenges in mind, what should investors consider about the sources of gold, and can they expect its price to keep climbing? To understand the repercussions of illegal mining, we took a closer look at the situation in Ghana.
For a deeper dive into this issue, check out our video report.
