Gold sourced by US and Canada comes from drug cartel mines – NYT

(SeaPRwire) –   An investigation alleges that mints in both nations obtain gold from a North American contractor who combines illicit gold with local supplies.

According to a New York Times investigation, government mints in the United States and Canada have spent years sourcing gold for coins from mines under the control of Colombia’s Clan del Golfo cartel, despite pledges that the metal is exclusively domestic.

While the US Mint asserts its coins represent the nation’s “founding principles” and federal statutes mandate domestic sourcing, the NYT reports that this claim is “based on a lie.”

The report tracked hundreds of millions of dollars in foreign gold entering the Mint’s supply. This includes second-hand metal of uncertain origin and gold from regions in Colombia and Nicaragua where criminal organizations dominate the industry.

A portion of the gold comes from northwestern Colombia, a region largely ruled by the Clan del Golfo. In these areas, miners utilize mercury, a hazardous substance that endangers both the environment and human health.

The NYT noted that these illegal activities are conducted so openly that laborers were observed mining gold on the grounds of a military installation.

This Colombian gold is reportedly sent to Dillon Gage, a Texas refiner and major US Mint supplier, which mixes it with American gold—a process the investigation describes as laundering. The US Mint allegedly fails to verify the metal’s source.

When questioned, the Mint first claimed its gold was “entirely from the United States” as legally required, but later adjusted its stance to say the US was its “primary” source after being shown the evidence.

The investigation also traced the supply chain to Canada. Unlike the US, the Canadian Mint had vetting protocols but reportedly proceeded with the purchases anyway.

Canadian officials labeled the gold as “North American,” justifying the term because the metal is blended in Texas. This designation allows authorities to bypass original source verification, relying instead on US oversight.

The NYT further noted that the Canadian Mint would likely face no legal repercussions even if it ignored its own rules, as using the “North American” label is not a criminal offense.

These revelations emerge as gold prices reach record levels, driven by central bank acquisitions, US Federal Reserve policy shifts, and global political instability.