U.S. Mint Gold Supply Reportedly Tied to Drug Cartel Mining Networks

The United States Mint is facing scrutiny after an investigation found that gold connected to illegal mining operations in Colombia, including mines controlled or taxed by drug cartels and armed groups, allegedly entered the supply chain for coins sold to American investors as “American” gold.

According to The New York Times, illegally mined Colombian gold was laundered through intermediaries, exported with paperwork that appeared legitimate, and eventually moved into formal global supply chains. In some cases, the report said, gold reached the U.S. Mint, even though federal law requires gold used for American Eagle gold coins to come from newly mined deposits in the United States or U.S. territories.

Under 31 U.S.C. § 5116, the Treasury Secretary must acquire gold for American Eagle coins from natural deposits in the United States, or a U.S. territory or possession, within one year after the ore was mined. The law also says the government may not pay more than the average world price for that gold.

The American Eagle program began in 1986 and includes gold, silver, platinum, and palladium coins sold in bullion, proof, and uncirculated versions. The gold coins are marketed as official U.S. products, a selling point that has long helped distinguish them from privately minted bullion.

The reported supply chain problem comes as Colombia’s illegal gold trade has grown into one of the most lucrative criminal markets in the region. Business Insider reported in March that the United States was the largest destination for Colombian gold in 2024, importing roughly $1.5 billion worth of the metal from the country. The same report cited experts who said criminal groups use gold because it can be easier to move, disguise, and launder than drug money.

The outlet also reported that the Mint’s supply chain included gold from Colombian mines tied to the Clan del Golfo, as well as gold from Mexican and Peruvian pawn shops, a Congolese mine partly owned by the Chinese government, and a Honduran company accused of disturbing an Indigenous graveyard to reach ore. The report said the Mint’s program sells more than $1 billion in investment-grade coins a year.

Gold’s appeal to criminal networks is simple. CBC reported that “Experts say the metal also has many attributes that make it attractive to criminals. Gold is untraceable, meaning it can be easily melted, concealed, sold and transported.” By the time it reaches international buyers, the gold may appear legitimate even if it began in a mine controlled by armed groups.

In Colombia, miners in cartel-controlled territory sell gold to storefronts in Caucasia, where it is burned, melted, documented under small-miner registrations, then bought by a government-owned exporter and shipped abroad. Export records showed about $255 million in bars from that chain arrived in Texas in roughly the past year, where refineries mixed it with other gold.

The Treasury Department and U.S. law enforcement have increasingly targeted cartel finances, including money laundering networks linked to the Sinaloa cartel and other organizations. The Associated Press reported in 2025 that Treasury sanctions targeted individuals and companies accused of laundering money for the Sinaloa cartel through front businesses and shell corporations.