Gold has long been considered one of the world’s most valuable and stable commodities. It is used in jewelry, financial reserves, and modern technology, including smartphones, laptops, and electric vehicles. However, investigations into the global gold trade have revealed troubling realities about how this precious metal moves through international supply chains. Weak regulations and limited oversight can allow gold mined in conflict zones or produced through illegal activities to enter the global market, often without consumers or companies realizing its origins.

A recent investigation by the Organized Crime and Corruption Reporting Project (OCCRP) and its partners highlighted these challenges, revealing how gold from conflict-affected regions in Venezuela may have been incorporated into everyday electronic products. Swiss lawyer and criminal law professor Mark Pieth, an expert in anti-corruption and financial crime, has been closely studying the international gold trade and the regulatory gaps that allow questionable gold to enter legitimate markets.

Pieth, who has served in several influential anti-corruption roles, including chairing the Organisation for Economic Co-operation and Development’s (OECD) Working Group on Bribery, discussed the complexities of the gold trade and the systemic weaknesses that make it difficult to trace the metal’s true origin. His insights provide a deeper understanding of how the global gold market operates and what reforms may be needed to make it more transparent and responsible.

Switzerland’s unique role in the gold trade

One of the most surprising facts about the global gold industry is that Switzerland-despite having almost no domestic gold production-has long played a dominant role in refining the metal. According to Mark Pieth, until recently as much as 70 percent of the world’s gold was refined in Switzerland. Although that share has declined somewhat, the country remains the largest gold-refining hub in the world.

Switzerland’s central role in the industry raises important questions about accountability and oversight. Refineries there process gold from numerous countries, often after it has already passed through other trading hubs. Once refined in Switzerland and stamped by reputable refineries, the gold becomes highly trusted in global markets and can be easily traded or purchased by banks, investors, and corporations.

Pieth notes that Switzerland’s connection to the gold trade also carries a complicated historical legacy. During the Second World War, Nazi Germany brought large amounts of stolen gold to Switzerland in exchange for the Swiss franc, which was a widely accepted convertible currency at the time. Later, during the apartheid era in South Africa, Switzerland played a significant role in the international trade of South African gold, helping the country maintain access to........

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