Gold prices continue their incessant rise setting a new record each week. According to experts, in the course of the last decade prices for the yellow metal went up 360%!
The year of 2010 only saw gold rise in price by 30%. This metal is soaring in price for the tenth consecutive year what is seen as the longest period of price rise, at least since 1920.
In recent years, gold appreciation was caused by the global financial crisis. In 2010, gold prices were additionally supported by debt problems in Europe, since gold is viewed by investors as a more reliable alternative to volatile currencies and corporate securities subject to severe fluctuations.
In January 2011, gold prices decreased by 6%, but in March they resumed their growth and reached a record level of $1,447 per ounce. In April, the metal continued its record growth and exceeded the psychological barrier of $ 1500 per ounce.
The major gold producers are China, Australia, South Africa, USA, Russia and Peru. About one-third of all gold mined in the world is consumed by jewellers.
As a result of rising prices for gold, developing countries have boosted its production consequently increasing the negative effect on the environment and human health.
According to a study published by the PLoS ONE Magazine and based on photographs taken by U.S. space agency NASA, deforestation for the sake of gold mining on a global scale between 2003 and 2009 led to destruction of 7,000 hectares of forest land.
Gold mining is a real threat to the environment involving deforestation, drainage of the soil, as well as air and water pollution by arsenic, cyanide and mercury. All this is done not by major gold mining companies, as one might think, but by artisanal miners operating illegally, without licenses.
It is believed that they provide from 20 to 30% of world gold output and are responsible for one third (about 1000 tons per year) of all mercury emissions into the environment. This liquid toxic metal is used to extract gold, despite the fact that this practice is forbidden throughout the world as extremely dangerous to humans and for the planet.
Mercury can be transported hundreds or thousands of miles by air and water to settle then in the soil, contaminate fish and mammals, and finally, the human body. While cleaning gold-bearing ore approximately 5.2 kg of toxic emissions containing lead, arsenic and mercury are released into the air, soil and water, according to environmentalists from the Earthworks Group.
Experts fear that the sharp rise in gold prices will lead to environmental pollution in places far away from the mining regions. While many countries have signed environmental agreements with major mining companies, artisanal miners continue to operate paying no attention to the environmental damage they cause.
"Wildcat" gold mining is often conducted in the Amazon basin known for its biodiversity and having an extensive network of navigable rivers and roads, while being sparsely populated. This is a great place for those involved in uncontrolled gold mining hidden from the prying eyes, since it is difficult to suppress due to lack of funding, staff shortages and problems facing the "green" patrols, which are forced to travel over vast distances.
Nevertheless, the UN Environment Programme has already approved the treaty designed to support the efforts of developing countries to combat mercury pollution.
Alex Shishlo, Editor of the Rough&Polished European Bureau in Brussels
