Investment vs. Money Laundering. Part 1. Gold

Gold has been considered to be valuable treasure for centuries. Gold as an investment has been stored in the houses of the wealthy European and Asian families for thousands of years.

This type of treasure is still topical in the modern world as nowadays investing in gold is very popular. Although last decades were relatively poor for this precious metal, last 3-4 years gold prices are steadily increasing and investment in gold is not just convenient because of gold being portable and compact but also quite trendy.

The stock market can never be as stable as gold, currency can be subjected to inflation and devaluation, but gld is nothing more and nothing less than gold. Moreover, its price is not likely to decline. At the golden market, the purity of gold is easy to determine.

So, since ancient times gold remains, perhaps, the main non-currency means of holding money. It is a good choice to invest in it. But gold is also a good choice for laundering “dirty” money. The advantages of investing in gold are also attractive to money launderers. The advantages they like best are its convertibility, high intrinsic value and potential anonymity in transfers. Most money laundering schemes employing gold are related to drugs trafficking, organized criminal activities, corruption and illegal trade.

Also, gold itself may be the result of crime that needs to be laundered – for example,if stolen or smuggled by developing a system of false invoicing. Sometimes gold purchases and sales can serve as a cover for the money laundering operation.

So, gold is a precious metal that is a good investment direction for law-abiding citizens and money laundering methods for criminals.

Leave a Reply

You must be logged in to post a comment.