Fairtrade Gold
Gold is a luxury product and a precious metal that represents wealth and glamour, but beneath the surface of sparkle and shine, lies a corrupt, exploitative, largely unregulated and grossly unfair gold mining industry. Gold has been used to fund wars and the industry exploits children and other vulnerable people who are sent down to mine for gold in dangerous conditions. It is responsible for damaging the environment, as mercury and cyanide are used in the extraction process. This dark and dangerous gold mining world remains hidden, as there is no way to trace which mine gold has come from. Mining companies are reluctant to disclose the source of their product and jewellers and other buyers remain ignorant of the ethics of their beautiful items.
The Ability to Trace
In 2011, progress was made with the launch of a Fairtrade and Fairmined hallmark for gold in the United Kingdom. This is a massive step forward in an industry typically shrouded in secrecy and ignorance. Buyers can be confident that they are purchasing an ethically mined product from a traceable source. The hallmark will be stamped onto the gold and will come with certification. The challenge for Fairtrade gold is to capture a large enough share of the market and eventually be the only gold people are willing to buy. Fortunately, the concept of Fairtrade gold has already had the backing of some of the top jewellers and jewellery designers in the industry. The ultimate goal is to make Fairtrade gold 100% of the gold they use in their products. But there is still a long way to go.
Cost
Fairtrade gold is about 10% higher of that mined, using the current industry norm and whilst some sellers may pass the cost onto the customer, others are keen to absorb this price increase in order to encourage and not deter people to choose Fairtrade gold. Some resistance is coming from more mainstream high street retailers who only buy in completed products and do not design and manufacture their own pieces. They claim that they are too removed from the initial stages of sourcing and buying gold to influence the market. Perhaps so, but if they start creating a demand for a more ethically sourced product, this will in turn put pressure on buyers to switch to Fairtrade gold. However, high end luxury retailers like Cartier and Tiffany, whilst making an acknowledgement of the ethical and environmental impact of current gold mining practices through campaigns like 'No Dirty Gold', stop short of being an active player in changing the ability to trace the gold.
Social and Ethical Impact
Whilst consumers continue to lust after gold, the demand for this precious metal impacts upon about one hundred million people who depend on the mining industry for a meagre income, with no health and safety or environmental protection in place. As is all too common, it is the most vulnerable people of the developing world who pay the highest price, whilst individuals far removed from the realities of mining gold are the ones that make a fortune from it.
Where Does Fairtrade Gold Come From?
The biggest barrier to setting about producing Fairtrade jewellery was where to source Fairtrade gold from. The pioneers behind the Fairtrade gold movement managed to find a mine in Columbia that pays its workers a decent wage and re-invests in the local community, doesn't use toxic chemicals and works with as minimal environmental impact as possible. This mine emerged as a result of protests against the construction of a highway and the local community was able to legally register themselves as gold miners.
Mines like this are leading the way in how gold mining can be transformed, but in order to establish more mining communities like this one, the rest of the industry needs to help start that process and consumers need to start creating the demand for an ethically sourced product.
