World Gold Council Warns of Gold Smuggling Crisis as Illicit Flows Exceed $120 Billion Annually

Senior figures in the global gold industry have warned of a worsening gold smuggling crisis, saying record-high gold prices have fueled illegal mining and expanded illicit trade, strengthening organized crime, financing armed conflicts, and threatening the integrity of global supply chains.

David Tait, Chief Executive Officer of the World Gold Council, said the value of illicit gold flows now exceeds $120 billion annually, noting that the sharp rise in gold prices over the past two years has significantly increased the profits generated by criminal networks involved in illegal mining and smuggling.

Tait said the illicit gold trade has become an increasingly serious global challenge, with strong links to organized crime, money laundering, sanctions evasion, and the financing of armed groups. He stressed that the issue requires a stronger and more coordinated international response.

He added that gold possesses characteristics that make it particularly attractive to criminal organizations: it is highly valuable, easy to transport, and can be melted and recast, making it difficult to trace its origin without robust due diligence and supply-chain controls.

Ruth Crowell, Chief Executive Officer of the London Bullion Market Association (LBMA), said the surge in gold prices has heightened the risks associated with illegal mining and illicit gold flows. She called for tighter oversight of global gold movements and stronger verification of gold sources.

Crowell emphasized that the industry must develop more effective traceability systems to ensure that only responsibly sourced gold reaches international markets. She also highlighted the importance of closer cooperation among governments, mining companies, refiners, and financial institutions to combat illicit gold trade.

According to the report, record gold prices have made illegal mining substantially more profitable, encouraging criminal organizations to expand their activities in several gold-producing countries and increasing concerns over the growing volume of gold with unverifiable origins entering global markets.

Industry leaders believe that tackling gold smuggling is no longer solely an issue of protecting the precious metals sector, but has become an economic and security priority essential to preserving the integrity of international markets and preventing gold from being used to finance illicit activities.