As global gold prices continue to rise, a 'gold rush' targeting this opportunity is spreading, with an analysis indicating that the scale of gold smuggling, particularly in South America, is rapidly increasing.
The Peru Economic Research Institute (Instituto Peruano de Economia) announced on the 17th (local time) that it estimates the scale of illegal gold exports within South America will reach approximately $12 billion (about 16.8 trillion won) this year, based on a comprehensive analysis of atmospheric heavy metal emissions around gold mines in the region and data from various mining authorities.
In its recently released data, the institute explained, "Considering the rise in gold prices, the scale of gold smuggling in South America in 2024 is expected to increase by more than 60% compared to the previous year, reaching an all-time high."
Globally, gold prices have shown a steady upward trend since the second half of last year, driven by concerns over global economic instability, a preference for safe assets to replace the U.S. dollar, and an increase in demand from China.
This rise in gold prices has led to an increase in illegal gold mining, with new miners colluding with armed violent organizations to infiltrate production and distribution networks while seeking new transaction pathways.
According to the institute, the average gold price in the third quarter of last year increased by 29% compared to the same period the previous year, and during this time, the number of new gold transactions and processing companies registered in Peru nearly doubled. This suggests that the lax management and supervision by authorities may also have played a role.
Peru, along with Colombia and Bolivia, is identified as a major illegal gold mining area in South America, with these three countries accounting for more than 80% of the entire illegal gold production in the region, according to the institute's analysis.
In particular, illegal gold miners are often connected to armed groups, leading to increasing threats to legitimate workers and local residents. In fact, a recent incident in Peru involved individuals presumed to be organized criminals attacking a gold mine and brutally killing 13 security personnel.
The Amazon rainforest region, where illegal gold mining primarily occurs, is also facing severe environmental pollution issues. Unlicensed miners are recklessly using mercury to extract gold and are reportedly discharging the waste into rivers and soil without any protection.
According to the Amazon Science Innovation Center (CINCIA), more than 70% of mercury in the atmosphere of the Madre de Dios area in southeastern Peru comes from small-scale mines, with mercury concentrations in some parts of the area exceeding the World Health Organization (WHO) permissible levels by five times at one point.
Deforestation is also progressing rapidly. The Andes Amazon Monitoring Project (MAAP) reported that the cumulative deforestation area related to mining activities, which was 970,000 hectares (9,700㎢) in 2018, has exceeded 2 million hectares (20,000㎢) in 2024, which is about 33 times the size of Seoul.