- The US Mint uses refined gold sourced through international supply chains, not directly from US mines
- US law mandates coins be made only from American-mined gold, to avoid human rights issues
- The Mint now acknowledges foreign gold use and plans a review to ensure supplier compliance with the law
The United States Mint is using gold from foreign sources, despite a legal requirement that its coins be made only from American-mined gold, a new investigation has revealed.
The Mint does not source gold directly from US mines. Instead, it buys refined gold that has already passed through international supply chains, The New York Times reported.
Every year, the United States Mint sells over $1 billion worth of gold coins. These coins often carry national symbols like the bald eagle and come with an official assurance that the gold is fully American.
This includes mines in Colombia allegedly linked to drug cartels, gold collected from pawn shops in countries like Mexico and Peru, and even mining operations in the Democratic Republic of Congo that have ties to Chinese ownership.
In one case, a company in Honduras reportedly extracted gold from land that included an Indigenous graveyard.
In 1985, the US Congress passed a law saying that coins made by the United States Mint must use only gold mined in the US. This was because the US did not want to be linked to gold coming from countries where mining was tied to human rights abuses, especially during apartheid-era South Africa.
Despite this rule, the Mint has still been using gold that originally comes from other countries. The report also suggests that even special coins, like a 24-carat gold coin made to celebrate the United States' 250th anniversary, may not be made entirely from American gold.
As the value of gold increases, it attracts more illegal and harmful activity. People usually buy it during wars, economic crises, or periods of uncertainty because its value tends to rise. Gold prices have surged in recent years, with analysts and banks projecting levels close to $5,000 per ounce in 2026.
High gold prices are attracting criminal groups into the gold business. Illegal mining is often done in harmful ways, like cutting forests and using mercury that poisons water and people. The money from gold is then used by gangs and armed groups to fund their activities, just like they do with drugs and weapons.
The report also noted that some extremist groups, including those linked to Al Qaeda, have entered the gold trade as another way to generate funds.
The investigation also looked closely at how illegal gold mining operates on the ground, especially in places controlled by criminal groups.
Countries such as Sudan are helping fund the ongoing conflict using gold mines. In Russia, gold revenues are supporting its war efforts in Ukraine. Nations like Venezuela and Iran are also using gold to reduce the impact of international sanctions. Illegal miners are also destroying parts of the Amazon rainforest and contaminating water sources.
In Colombia, a major cartel known as Clan del Golfo is involved in gold trafficking along with cocaine, using the money to maintain power through violence. At a site known as La Mandinga, the cartel enforces strict control over mining operations.
Mining at the site is carried out using excavators and high-pressure hoses to break down hillsides into mud. Workers then mix the mud with mercury by hand to extract gold particles. This is both toxic and environmentally damaging.
The report said hundreds, and possibly over a thousand, teams operate in the area, with a collector gathering around $400 per team every month.
Initially, Mint officials said that its gold was fully sourced from within the US, as required by law. But after the investigation findings were shared, the Mint changed its position, saying the US is only its "primary" source and that it is working to better track where its gold comes from.
Scott Bessent, who oversees the Mint through the Treasury Department, said the issue would be reviewed. "This review is focused on ensuring that the US Mint's gold suppliers comply with the law and strictly satisfy their obligations, and that the Mint takes every step possible to continue to vigorously safeguard our national security and uphold market integrity," he said.
