Simply put
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British gangs are using gold coins, bars, and grains to conceal the money made from drug trafficking.
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Experts have raised concerns about gold’s appeal during a shift to cashless transactions, noting that data on its criminal use is largely anecdotal.
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Unlike cryptocurrencies, which are traceable, gold’s lack of transparency makes it harder to track criminal activities.
Reports indicate that organized crime in the UK is increasingly turning to gold to launder the proceeds from their activities.
With the price of gold hovering near record highs—almost $3,400—an article highlights anecdotal evidence suggesting that its use is rising among British criminals.
For instance, a drug dealer in Essex was found with gold coins valued at $32,425 hidden in a safe, while another Birmingham gang converted about $135,100 in profits into gold bars.
In another notable case earlier this year, members of multiple gangs in Bradford laundered almost $359.4 million by buying gold grains.
Legal expert Gary Carroll pointed out that precious metals have distinct advantages over cash, particularly for criminals. He mentioned that gold maintains value better than cash and indicates a shift towards the metal in a largely cashless society.
However, the instances cited in the report over the past three years don’t provide compelling evidence for a significant trend, as reliable data on precious metal usage by criminals is scarce.
Ari Redbord, a policy director at TRM Labs, acknowledged the possibility that criminal use of gold could “probably” rise, though he was cautious about solidifying such claims. He noted that gold is challenging to quantify since it isn’t tracked on the blockchain, which is part of its allure for criminals.
Redbord used a past example where a hacker bought a gold bar to launder stolen crypto proceeds, illustrating that gold’s long-standing popularity for money laundering stems from its portability and value.
Another report by the US government pointed to gold as a means for evading sanctions and laundering money from illicit activities.
When discussing whether gold or crypto is preferred in organized crime, Redbord acknowledged that while gold can also leave a “digital footprint,” transporting it can be cumbersome and risky. In contrast, cryptocurrency is often more easily traceable, especially when crossing borders.
TRM Labs assists law enforcement in tracking illicit flows, collecting stolen funds, and disrupting criminal networks—something that is significantly harder with physical money.
Despite the surge in cryptocurrency use among criminals, gold still appears to have a role in money laundering. Recent reports reveal that illegal addresses received up to $51.3 billion in crypto last year.
