Editor’s Note
This article challenges the widespread belief in “risk-free” gold, highlighting the environmental and ethical complexities often hidden within its supply chain.
The concept of ‘risk-free’ gold is a pervasive myth within the global gold industry. This notion often obscures the complex realities of gold sourcing, which can be entangled with environmental degradation, human rights abuses, and opaque supply chains.
Despite the proliferation of responsible sourcing standards and certification schemes, guaranteeing that gold is completely free from association with conflict, illegal mining, or poor labor conditions remains a significant challenge. The supply chain is often fragmented, passing through multiple intermediaries before reaching refineries and final consumers.
Industry experts argue that reliance on paperwork and audits is insufficient. True due diligence requires deeper traceability and engagement with artisanal and small-scale mining (ASM) communities, which produce a substantial portion of the world’s gold but often operate in informal or high-risk contexts.
The push for transparency is growing, driven by consumer awareness, investor pressure, and regulatory frameworks like the EU’s Conflict Minerals Regulation. However, the gap between policy and practice, especially in remote mining regions, persists.
Moving beyond the myth necessitates a collective effort from miners, refiners, jewelers, and electronics manufacturers. This includes investing in technology for better traceability, supporting formalization and better practices in ASM sectors, and adopting a more nuanced understanding of ‘risk’ that focuses on continuous progress rather than a binary clean/dirty classification.