Why ethical gold is hard to find
STORY: Investment funds are increasingly focusing on bullion from ethical sources
And stressing their sustainable ambitions to attract new clients
But buying newly-made bars is no guarantee the gold is untainted by crime or violence
The London Bullion Market Association brought in tighter provenance rules in 2012
But many bars made after that date contain recycled and unverified gold
"It resembles greenwashing. When it’s not possible to trace origin, just say so," says Patrick Schein from the Alliance for Responsible Mining.
European demand for new gold means more pre-2012 bars end up in Asia where they’re recast into smaller bars
Some of these are later returned to the West and recast in the larger size again
Investment funds could pay more to secure bullion with a guaranteed origin
But most don’t, citing undesirable costs for clients and trading complexities