The Ethics of Gold

As controversy over conflict gold and dirty mining escalates, ethical issues are becoming as important for gold as they are for diamonds.

By Rob Bates, Senior Editor -- JCK Online, 3/1/2010 12:00:00 AM

Issue 1: Conflict Gold

Background The conflict in the Democratic Republic of Congo has had a higher profile ever since Secretary of State Hillary Clinton's trip to that country last summer. The ongoing war there is considered one of the world's worst, with gruesome reports of rape, sexual violence, and other atrocities. Until now, activists who charge that conflict minerals are funding Congo unrest have focused mostly on minerals used in electronics, rather than gold. But Sasha Lezhnev, of the Enough Project, said that's changing. "Gold is increasing as a problem as its price goes up," he told JCK. He said gold is now the second-biggest contributor to Congo unrest after tin.

Recent news60 Minutes in late November ran a story explicitly linking gold jewelry to the Congo war. Lezhnev said his group plans to survey the major jewelry chains and sellers about how they source their gold. A bill about conflict minerals is under consideration by Congress, but it doesn't mention gold.

The future Lezhnev said conflict-mineral activists would like to see a "Kimberley Process for gold," but some Kimberley Process veterans say that's unlikely. "People use the term 'Kimberley Process' without really knowing what that is," says Jewelers of America chairman Matthew A. Runci. "It's an open question whether that kind of approach can be developed for gold." He said his group is now meeting with gold miners and NGOs to discuss possible solutions. In any event, major companies will be under pressure to show a traceable supply chain.