Drug Cartel Gold Found in the U.S. Mint

Despite the bald eagle stamp on U.S. Mint gold coins, much of the gold purchased by the mint has dubious foreign origins, according to a recent investigation from The New York Times. Congress passed legislation in 1985 that prohibits the mint from making bullion out of foreign gold; however, the mint has seemingly ignored the law. As gold prices continue to surge and investors buy the metal as a safeguard against economic instability, criminal organizations have an incentive to mine and sell as much gold as possible in destructive ways. 

The New York Times Investigation 

The New York Times journalists tracked hundreds of millions of dollars in foreign gold entering the U.S. Mint in recent years. One source is located in the Clan del Golfo (a Colombian drug cartel) territory in northwestern Colombia at the La Mandinga ranch.

There, workers pay the cartel to mine for gold using mercury, an illegal and toxic practice. Workers then travel to the nearby city of Caucasia to sell their gold. When buyers verify the ledgers to ensure the gold is legal, the paperwork checks out. Miners in La Mandinga are registered under a Colombian program for small-scale miners known as baraqueros. Despite that the cartel-controlled mines do not meet the necessary requirements—the mining must be conducted with hand tools in authorized areas—Colombian authorities rarely examine baraquero gold. Though the mining practices in La Mandinga are well known, the shops only check the ledgers, which say the gold is legal. From there, gold buyers sell to a government-owned exporter, which mixes the gold from La Mandinga with gold from other sources, and the finished bars enter the United States. 

Most of the cartel gold enters the country through Texas. At Dillon Gage refinery outside Dallas, Texas, workers melt the Colombian gold with gold from other suppliers, and the end product becomes American. The refinery then sells the product to its clients, including U.S. Mint suppliers, and provides customers with lists of Dillon Gage’s sources. When the New York Times informed Dillon Gage about the cartel gold in the company’s pipeline, the company suspended purchases from the Colombian exporter.

U.S. Mint Gold Buying Policy

A Treasury Department inspector began a general audit during President Donald Trump’s first term. After five years, auditors discovered that the mint was not following its own policies. Though the coining facility has a policy to offset any foreign gold purchases with United States gold, it was not enforcing the provision. Additionally, its gold-offset plan might violate United States law. The audit also found that for two decades, the mint had not asked its suppliers where they had acquired the precious metal. Though the Biden administration responded in 2024 that it was months away from publishing new plans for investigating gold sources, those plans never materialized. 

When the New York Times presented its findings to the mint, a spokesperson said that the United States was the primary source for gold, and that the mint was taking steps to better track its gold sources. To meet demand (the U.S. Mint sells more than $1 billion of investment-grade gold coins each year), the mint has not cut off foreign gold. However, the spokesperson said the government monitors its supply chain. Treasury Secretary Scott Bessent also said he would investigate the gold procurement practices, stating, “This review is focused on ensuring that the U.S. Mint’s gold suppliers comply with the law and strictly satisfy their obligations, and that the mint takes every step possible to continue to vigorously safeguard our national security and uphold market integrity.” At the time of this writing, the U.S. Mint has not released any policy for tracking its gold sources.