A New York Times investigation has revealed that the U.S. Mint purchased gold that originated from Colombian drug cartels and subsequently sold it as American-sourced precious metal. The investigation traced supply chains connecting illegal mining operations to official U.S. government gold reserves.

Reporters documented a large-scale illegal gold mining operation located on a Colombian military base, within proximity of military posts. When confronted, military officers denied knowledge of the illegal mining activities, despite the operation being conducted openly near their facilities.

The investigation found that gold from these illicit sources entered the U.S. supply chain through foreign pawn shops and drug dealers before ultimately being purchased by the U.S. Mint. The government agency then processed and sold this gold while representing it as domestically sourced American gold.

The findings highlight significant gaps in oversight and verification systems within the precious metals industry. As gold prices have increased substantially, traditional safeguards and verification processes appear to have weakened, allowing illicit gold to enter legitimate commercial channels.

The reporters spent considerable time tracing these supply chains to establish the connection between the Colombian cartel mining operations and U.S. government gold purchases. The investigation raises questions about the effectiveness of current due diligence procedures used by government agencies when purchasing precious metals from international sources.