Gold Price and Gold Market Under Scrutiny: US Gold May Originate from South American Drug Cartels

Investigation Reveals Link Between US Gold and South American Drug Trade

A new report in the New York Times shows US gold may come from South American areas run by drug groups. The report states that parts of the gold used by the US Mint for coins come from these regions. US officials work to stop drug runs in Latin America.

US Mint’s Gold Supply Chain Questions

The US Mint must use US-mined gold for its products. For many years, the Mint bought gold from abroad without short checks on its source. Since 2002, the Mint did not track where its gold came from. This weak check let suppliers blend gold from many countries. Some gold appears linked to groups in Colombia that work with illegal trades.

• Gold goes through shops in Mexico and middlemen tied to South American drug groups.
• A source in Texas said a large buyer sent gold to the US Mint. The gold came via a Colombian firm tied to the "Clan del Golfo," known for smuggling cocaine. This group has been labeled as a threat by the US since December 2025.
• The drug group makes fees from miners and traders who then send gold to the US market.

Central Bank Gold Holdings and Global Impact

The US holds over 8,100 tons of gold. Germany holds 3,350 tons in Frankfurt, New York, and London. These gold reserves help keep financial strength. The report puts questions on the ethics of gold sourcing. The US Treasury first denied major issues and then began to check its buying rules.

Gold Price Dynamics Amid Geopolitical Turmoil

In the past three years, the gold price has more than doubled. The price is close to $4,700 per ounce. Political conflicts, high prices, and market fears push more people to buy gold. Investors see gold as a safe place when money values fall.

Summary: Key Drivers Affecting the Gold Market and Gold Investing

• The report ties some US gold to groups in South America.
• The US Mint did not always check where its gold came from.
• Political and money risks push gold prices higher.
• Large gold reserves in the US and Germany show gold as a key money asset.

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This article was generated by Hivebox AI in collaboration with nGRND.
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