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Gold Fever Fuels South America's Drug Crisis
22 Nov
Summary
- Illicit gold mining is now a larger economy than cocaine in Peru.
- The pandemic accelerated the spread of illegal mining and coca production.
- Criminals launder drug money through untraceable, refined gold.
A potent combination of illicit gold mining and coca cultivation is driving a significant increase in cocaine production across the Amazon region. This "narco-mining" phenomenon is particularly pronounced in Peru, where the illegal gold economy has surpassed the cocaine trade in value. Criminal organizations are leveraging the high price of gold to invest drug trafficking profits, using the refined metal as a more easily laundered asset.
The COVID-19 pandemic exacerbated this crisis, as lockdowns provided criminal groups with opportunities to expand their territorial control and coca cultivation. Many individuals, forced into informal economies, turned to illegal occupations for income, further empowering these illicit operations. Gangs are utilizing existing smuggling routes and logistical networks for both drugs and gold extraction.
This nexus of crime extends across borders, involving powerful groups like Brazil's Comando Vermelho and Colombian FARC dissidents, who control production and distribution. The issue is compounded by corruption and political instability in producer countries, weakening law enforcement and creating fertile ground for transnational criminal enterprises.
