Miners heat processed gold concentrate over an open fire at an artisanal mining site in Dalago Mahas, Sudan’s Northern State, Friday, May 8, 2026. (AP Photo/Mohnd Blal) Like millions of Americans, I was thrilled to celebrate the 250th birthday of the United States these past several weeks. Across that quarter millennium, we became and remain the world’s one true indispensable nation. And one thing that helped us get there — a hallmark of U.S. economic power, international prestige, and yes, some glitz and glamour — is gold.
From the foreign gold coins circulating prior to and during the Revolution, to its earlier use as a standard for the dollar, to its role today in Americans’ financial security and its prominent display by President Trump at the White House — gold is as American as the bald eagle and apple pie.
But gold’s extraordinary run in the U.S. and internationally the last few years has laid bare the need to address a series of problems that, left unchecked, will cause severe financial, security, environmental and health issues across the globe.
The price of gold has nearly doubled over the past two years. For all the benefits that brings to financial markets, national economies, and personal savings and investments, illegal artisanal and small-scale gold mining — often in economically disadvantaged parts of the world — is creating substantial and worsening downside effects. Illicit gold has become a material driver of transnational organized crime, terrorist financing and the funding of hostile and “bad actor” states.
Gold’s unique value, portability and global liquidity make it an attractive instrument for criminal exploitation. In too many parts of the world, illicit and informal gold production has become a parallel financial system — one that evades sanctions, bypasses oversight and channels revenue into networks that thrive on corruption and violence. The consequences are severe: human rights violations, environmental degradation and pervasive illicit finance.
This is not an abstract risk. Artisanal gold mining operates in more than 80 countries and is deeply intertwined with local economies. Over 20 million people worldwide depend on artisinal gold mining directly for employment, and artisinal mining in general supports the livelihoods of roughly 270 million individuals. The sector accounts for approximately 20 percent of global gold production and nearly 80 percent of global mining employment. These lopsided figures underscore a fundamental reality: Artisanal mining is too significant to be ignored.
Yet much of this activity remains informal, unregulated and vulnerable to criminal capture. Illicit practices deprive states of lawful revenue, distort markets and prevent responsible reinvestment in local development. Criminal actors move freely through opaque supply chains, while legitimate miners are left without access to formal markets or financing.
This status quo is neither inevitable nor acceptable. It is a solvable problem, and solving it is a shared security and economic imperative for governments, private companies and civil society alike.
Formalizing artisanal and small-scale gold mining could be one of the most effective tools available to counter illicit finance, strengthen supply chains and restore state control. Formalization is not about exclusion or criminalization. It is about creating lawful, transparent pathways that reward responsible behavior and dismantle illicit networks.
To that end, my organization, the World Gold Council, and its members advocate for a three-pronged gold processing initiative — a practical, industry-led solution that addresses the problem at its source.
First, gold must be verifiably tracked from the point of production through processing. Robust technology solutions now exist that ensure gold origin integrity across the supply chain. Gold that cannot be traced cannot be trusted and should therefore not be traded.
Second, establishing lawful, transparent processing infrastructure is essential to disrupting criminal exploitation, protecting water resources and safeguarding public health.
Third, central banks and other official sector institutions have enormous influence over the market. Their purchasing power can either entrench illicit supply chains or help dismantle them. When responsible buyers insist on transparent, accountable sourcing, they create powerful incentives for formalization and raise standards across the sector.
Responsible gold processing is not an aspirational concept; it is a practical security tool. It strengthens financial integrity, bolsters economic resilience and supports durable development in regions that too often have been written off as ungovernable. Importantly, it provides legitimate economic opportunity and promotes better health and safety for millions of people whose livelihoods depend on gold.
No single actor can solve this challenge alone. Governments, intergovernmental organizations, industry, and civil society all have a role to play. For example, Sens. John Cornyn (R-Texas), Tim Kaine (D-Va.) and their colleagues have been advancing legislation in the U.S. Senate to create a legal gold and mining partnership strategy to enhance U.S. leadership in tackling illicit gold.
A private sector led approach, aligned with clear public sector objectives and with input and buy-in from those most impacted at the source, offers the fastest and most scalable path forward.
The costs of inaction are mounting. Every untraceable ounce of gold represents lost revenue, weakened governance and increased security and environmental risks. Every delay strengthens criminal networks that prosper from opacity and disorder.
Two hundred and fifty years strong, as the U.S. charts a course for its own future while remaining the world’s free and powerful leader, it is uniquely placed to lead the world in reining in the growing, pernicious threat of illicit artisanal and small-scale gold mining.
Carla Sands, a former U.S. ambassador to Denmark, is a senior advisor and spokesperson with the World Gold Council.
Add as preferred source on Google Tags 250th anniversary of U.S. independence artisinal and small-scale gold mining denmark gold gold currency gold standard illegal mining illicit gold President Trump Sen. John Cornyn (R-Texas) Sen. Tim Kaine Sens. John Cornyn supply chain Tim Kaine U.S. senate united states white house World Gold CouncilCopyright 2026 Nexstar Media Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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