The Truth About Gold

"As many as 1300 gold mines existed in Egypt, but the estimated production was only one ton per year."

Nearly every civilization throughout history has valued gold in one form or another. Many cultures used the precious metal for acts of worship, and to symbolize deities. It is because of these ancient practices that gold has risen to the status symbol that it is today. Although gold is still valued for it's beauty, it is it's rarity that now drives world prices up, encouraging yet more mining for this ultimate form of currency.

In Ancient Egypt, gold was thought to be the flesh of the gods, and was also used to represent the sun. Like many cultures, sun worship was an extremely important part of everyday life. The Pharoahs and other important, wealthy Egyptians adorned themselves with gold to show their respect for the sun god Amun or Re. The royal family controlled all of the gold in the kingdom for this purpose, which prevented it from becoming a source of currency. Until the Ptolamaic Period (323 BC), all trade and commerce in Egypt was done by barter, and paid workers received foodstuffs in exchange for services.

Most gold was mined in Nubia, or what is now northern Sudan. The word Nubia comes from "Nub", the Egyptian word for gold. Ancient Egypt is known for it's extravagant use of gold, but by today's standards, their use of the metal was very low. Although as many as 1300 gold mines existed during the height of Egypt's mining exploits, the estimated production was only one ton per year. Most of the metal was used to create jewelry, funerary masks, religious statues and decorations.

"The United States has the largest gold reserve of any single country at 8133 tons"
The first gold coins used for trade were created in Lydia, or what is now Western Turkey. At around 550 BC, the Lydian king, Croesus, began minting primitive electrum pieces which varied in size and design. The Greeks soon adopted the same techniques for silver as well as gold, and after Alexander the Great conquered Persia, gold coins became a major source of currency in the civilized world.

As the Roman empire grew in size and prosperity, the production of coins increased. Most Roman soldiers and officials were paid with the 22 carat gold aureus. Hundreds of millions of gold pieces had been minted and disturbed by the fall of the empire after 400 AD.

Money in the form of precious metal continued at varying degrees until the 1930's. During the Great Depression, the United States government recalled all gold coins still in circulation. Paper money has dominated world markets ever since.

Although gold coins are no longer a common form of currency for everyday trade, raw metals are still an extremely important part of the world's economies. Because it is easily identified, and resists devaluation during depression and war, gold is still considered the ultimate investment.

Banks around the world stockpile gold, usually in the form of ingots, as a store of value. This economic practice is meant to impose risk management and create a basis for trade. As of September 2008, the European Central Bank held the largest amount of gold, at approximately 10,911 tons. The United States has the largest gold reserve of any single country at around 8,133 tons.

Two thirds of all gold bought and sold in the world is used to produce jewelry and other personal adornments such as watches, and gold thread for clothing. In 2007, over 53 billion dollars in gold jewelry was sold around the globe, which amounts to approximately 2400 tons of raw metal. These massive amounts of gold take the form of rings - particularily wedding rings - chains, earrings, bracelets and more.

Second to the jewelry business, gold is most coveted by electronics companies. Because gold is a very good conductor of heat and electricity, it is ideal for electrical and mechanical components. Heat, moisture, oxygen, and most corrosive agents have little to no effect on gold, even over time. Because of this resilience, over 400 tons of gold was used for industrial purposes in 2007, with another 57 tons used in dentistry.

Decorative or 'sentimental' gold use added up to over 200 tons. This portion is used to make coins, medals, trophies and other decorations, though often in the form of plating rather than solid gold.

In addition to the extravagance of gold jewelry, many wealthy people around the world have taken to enjoying edible or 'culinary' gold. First introduced by upscale restaurants as a way to impress their patrons - and increase the price of a dessert - anyone with access to a gourmet food shop can now sprinkle, paint, or layer their foods with tiny amounts of pure gold.

Although there have been many claims that gold or "white powder gold" is a miracle cure, it has only a few practical uses in medicine. Rheumatoid arthritis is sometimes treated with sodium aurothiomalate or aurothioglucose injections, and radiologists sometimes administer a colloidal solution of radioactive gold to diagnose patients.

The many other minor uses of gold include glass pigment, architecture and space mechanics.

There are many minor methods for extracting gold from the Earth. Some forms, such as gold panning, are often practiced as a hobby or tourist attraction in areas where gold was once abundant.

Sluicing can also be practiced on a small scale, though some mining companies still use the process to collect gold from river beds. In order to make the process profitable, the shoreline and surrounding area must be altered to maximize the amount of gold-bearing silt. Some sluice mines also use dredging techniques, which draws sediment up from the river bed and into the sluice system.

The majority of the world's gold comes from hard rock mining, where ore is recovered from deep within the Earth. Until the introduction of heavy machinery and advanced digging tools, all gold mines were dug in the form of tunnels. In many countries, this method of mining us still used today.

Shaft Mines

In the shaft or tunnel mining process, workers chip away at the rock, collecting those pieces which contain trace amounts of gold. These will later be crushed and separated with chemicals. Although technology has improved the safety of shaft mining, there is still plenty of danger for workers toiling in the dark. Injury or death can occur from falling rock, slips, and in some cases, explosions. Not all countries or mining companies follow safety guidelines and regulations that help to prevent these types of accidents. Safety equipment is not always provided for the miners.

"30 percent of artisanal gold miners are women and children."Artisanal or small-scale mining refers to low production mining projects by both companies and individuals. The processes used vary depending on the region, and include underground and sluicing techniques. Today there are as many as 15 million people making a living as artisanal miners, 30 percent of which are women and children.

The earnings for most mine workers is low - salaries are often paid in bags of rock which may or may not contain valuable gold. Companies are able to exploit their employees with this 'lottery' approach, for the promise of an undetermined amount of gold is better than nothing at all.

In some underdeveloped countries, many peasants attempt to discover tiny amounts of wealth by digging illegal shaft mines, searching for rock that may contain traces of gold. Though the yield - if any - is minuscule, many people still hope that a lucky strike will change their circumstances.

Open Pit Mines

Thanks to industrial developments such as cranes and hauling trucks, most major mining companies now employ open pit mining to maximize their gold collection. Essentially a large hole in the ground, these immense mines are continually expanded until all profitable traces of ore have been extracted.

As large machines dig deep into the Earth, hauling trucks cart away the rock to be sorted. Whatever materials do not contain ore are immediately discarded in large piles called waste dumps. The amount of rock disposed of is massive. In order to collect a single ounce of gold, as much as 250 tons of rock must be removed from the pits. The Newport Mining Corporation's open pit mine in Indonesia employs 111 trucks which haul nearly a hundred million tons of rock every year.

Some companies do attempt to lessen their mines' environmental impact, though not due to any moral obligation. According to mine engineer Charles Kubach, the environment is considered in mine planning because "the cost of environmental protection is minimized by incorporating it into the initial design, rather than performing remedial measures to compensate for design deficiencies; and negative publicity or poor public relations may have severe economic consequences".

Once raw gold has been harvested, it must be separated from the stone which surrounds it. After larger pieces have been broken down to a manageable size, different techniques are used to extract the gold. The two most common methods are cyanide extraction, and mercury extraction. Both large scale and artisanal mining groups use these methods, which contribute to some of the worst environmental hazards in the world.

Cyanide Extraction

Once the rock containing precious ore has been ground into fine pieces, it is mixed with a solution of sodium cyanide to remove the gold. It is then mixed with zinc to separate the metal from the cyanide, and sulfuric acid is used to remove the zinc.

Once the gold has been removed, the remaining solution is mixed with lime and dumped into a tailings pond. Over time, the chemicals naturally become less toxic, though exposure to the solution can cause serious harm to surrounding ecosystems. Accidental spills are of particular significance. Although incidents are rare, contamination from a single mine can kill fish and other organisms for several miles.

The Center for Disease Control defines cyanide as "a rapidly acting, potentially deadly chemical that can exist in various forms". Cyanide exposure prevents the cells of the body from using oxygen, causing the following symptoms: rapid breathing, restlessness, dizziness, weakness, headache, rapid heart rate, nausea and vomiting. Large amounts of cyanide can have even more serious effects on the body such as convulsions, lung injury and fatal respiratory failure. Prolonged exposure to cyanide has been known to cause brain damage and heart failure.

"One-third of all mercury pollution is caused by artisanal gold mining."Mercury Extraction

The process of removing gold from rock with mercury is fairly simple. Fine pieces of ore bearing rock are mixed with liquid mercury, which separates them. Once the gold has been collected, it is heated to burn off any residual mercury.

This technique is commonly used by small scale miners, and disposal of the chemicals is rarely ideal. Small milling operations often dump their used mercury directly into fresh water systems. The United Nations Industrial Development Organization estimates that one-third of all mercury pollution is caused by artisanal mining. Each gram of gold requires as much as five grams of mercury to process. To create a typical wedding ring can use anywhere from 56 to 140 grams (5 ounces) of mercury.

Mercury is a neurotoxin that can cause damage to the brain, nervous system, lungs and kidneys. Even in small quantities, it is most harmful to pregnant women and children. Because of the large amounts of mercury present in the world's water, many ecosystems experience lower birth rates, in addition to illness and death caused by mercury poisoning.

Some mining companies claim that their dumping methods have little impact on the environment, because they are able to pipe their trailings directly into ocean trenches, where little to no sea-life exists. Although it is unclear what effect pollution may have at such depths, any mercury that does find it's way into habited areas will ultimately effect the entire food chain.

Once mercury has been exposed to bacteria in the water, it is converted into methylmercury. This chemical is easily absorbed by surface contact, and accumulates in small animals such as plankton. Once lower organisms have been affected, a process called bioaccumulation begins. As larger animals consume the contaminated organisms, they are exposed to higher concentrations of methylmercury. This trend continues up the food chain, until higher predator species such as birds suffer serious health and development problems.

It is because of mercury poisoning that the Environmental Protection Agency suggests adults avoid eating more than one can of tuna per week, to avoid health problems. Similar guidelines are suggested for shark, swordfish and fresh or frozen tuna, since these predator fish have the highest levels of bioaccumulation.

"Every ton of gold mined results in 1 death and 12 serious injuries."When a mining company selects an area to begin excavation, they are often welcomed by corrupt governments who will get the largest share of any revenue that remains in the country. Compared to the total profits that the mine will create during it's operation, this amount is miniscule. Most of the money will be retained by the company, to be spent in other countries which already have thriving economies.

In many cases, mines are opened without any consultation of local government and citizens. Although organizations like the World Bank are demanding "free, prior, informed consent for all operations which may impact communities", most of the voices are still not being heard. Opposition to mining has often been met with police brutality and worse.

Displacement

Indigenous peoples, farmers and other rural citizens become displaced if their homes are located in the area where a company has chosen to mine. Even when ownership of the land can be proven, people are often removed by force. In the early 1990's the UK based company Rio Tinto used Indonesian military to burn villages and make way for their new gold mine.

Once mining has been established, other citizens have no choice but to relocate. Road building, pollution and even crime associated with mines and their camps can make life impossible for nearby farms and villages. Water contamination from tailings ponds, garbage dumps and poorly planned septic systems can cause steep drops in farm production. The result is that families who have made a modest living in an area for generations must seek work elsewhere.

Population Increase

Mining companies are notorious for exploiting countries which have low standards of living, and poor labor laws. Although wages are low, people flock to newly opened mines seeking work. This sudden increase in population has an immediate effect on surrounding communities. Where social services such as schools and hospitals are available, the demand for care cannot always be met. Natives of the area are forced to share their services with migrant workers, and local governments must foot the bill.

Occasionally mining companies will contribute to the improvement of local amenities, creating new roads, buildings and homes. In many cases, the quality of living does improve near mining operations. This 'generosity' however, is meant only to improve the productivity of the mine, and in turn increases the burdens on local government. As the cost of living rises, crime, drug use, and other social problems continue to rise as well.

Once the ore in the mine has been exhausted, the company will pack up their operation and leave the community to clean up the crime and pollution on their own. Hundreds of out of work miners must now attempt to find jobs elsewhere, or become vagrants, causing further strain on local governments and economies.

Slavery and Exploitation

Although 'legal' slavery is rare, all types of mining are nearly always associated with slavery of some kind. Miners are forced to work in poor conditions, for long hours, and with minimal pay. In many countries, women are expected to contribute to mining operations, but must share the same wage that her husband would receive if he were not married.

Mining jobs are always temporary, for each area can yield only so much ore. Workers who are fortunate enough to be paid for their efforts cannot expect any income security such as promotion or pension. They are often forced to work without proper safety equipment, or expected to pay for their own from their modest wages.

Even in the most pristinely run mines, accidents and fatalities are common. Mine workers account for about 1 percent of all employed people in the world, yet mining causes over 5 percent of all work related fatalities. Every ton of gold mined results in 1 death and 12 serious injuries.

In addition to forced labour, many mining camps keep women and children as prostitutes, often against their will. Many of these women are kidnapped, deceived or coerced into traveling to the camps, after which they are restrained with violence and forced to work. In some countries, such as Suriname, extreme poverty causes men and women to sell their own children into slavery. Some will be forced to work in various industries, such as mining, while others will be forced to serve in even more degrading roles. For many of these women, their lives will end in rape and murder.

By limiting our consumption of gold, we can make an impact on the damage done to our environment and society. The most obvious solution is to avoid buying or using gold wherever possible. Ironically, the easiest gold product to give up - jewelry - is also the most abundant. If gold jewelry was no longer a worldwide obsession, it is likely that we could sustain our other needs for gold without ever cutting another hole in the earth.

The next time you are thinking about purchasing a gold watch, necklace, or ring, ask yourself these questions:

"Will wearing this gold jewelry make me happier?"

"Can this item make me a better person?"

"Would my money be better spent on something else?"

Consider what you could do with the money that you would save by electing not to buy that gold item. If you choose an affordable alternative to gold, you could use the difference to save for your retirement, your child's education, or donate to a worthy charity.

Some gold alternatives include anti-tarnish brass and silver. Although these metals have a better reputation for social and environmental impact, they should also be used sparingly whenever possible.

If gold is a must, consider buying from a jeweler that uses only recycled gold - made from previously owned jewelry and objects.

In addition to reducing our consumption of gold, we can also seek changes in the way that it is collected, extracted and used. The No Dirty Gold campaign is an excellent - and successful - organization that helps to support groups who are attempting to improve the way that we harvest gold around the world. They work with retailers, governments, mining companies and even celebrities in an attempt to spread the word about poor mining practices. You can read about some of their achievements and activities on their website, as well as sign the pledge to say "No Dirty Gold!"

Spreading awareness about the true price of gold is also an important responsibility for those who wish to see change. The more informed we are about the products that we buy, the better we can be at making decisions for our future. If you were surprised or concerned by any of the information that you found here, please share it with a friend.

You can help raise awareness about the damaging effects of gold mining. Giving up gold may seem like a sacrifice for many people, but like any environmental issue, we must seek change one person at a time.

If you believe that this issue is important, please sign the No Dirty Gold Pledge, and tell your friends about it. You can also share this page with others:

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Content Sources and Research Materials:

The Real Price of Gold - National Geographic January 2009

All That Glitters Is Not Gold - Grinning Planet

Mining the Motherlode - Wells Historical Society and Wells Museum

Mining Watch - MiningWatch Canada

Slavery: Bitter Harvest - UUWorld.org

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