Mining Is a Controversial Practice. How Can You Buy Ethical Gold or Silver?

Are you looking for new earrings, a necklace, or a brooch for yourself or as a present? Hoping for some gold or silver jewellery to surprise your loved ones with on Christmas, Valentine’s Day or their birthday? As with clothes, it’s essential to shop for jewellery consciously. Do you know where your jewellery’s gold, silver and diamonds come from? Do you know how to recognise a sustainable piece of jewellery? COSH! investigated for you. 

Gold & Silver 

Western Europe Recycles Gold and Silver 

Did you know that most of the gold and silver available in Western Europe comes from old recycled jewellery, so it does not contribute to gold mining pollution? 

Your new jewellery could be made from recycled gold, and you probably wouldn’t even be aware.

A bit of history: in 2009, 42% of the total gold stock worldwide was recycled gold. Since then, the percentage of recycled gold has only gone up. The gold market exploded during the financial banking crisis in 2009-10. The precious metal – in contrast to savings accounts – retained its value. As a result, many families sold off their jewellery that had been handed down for generations. 100,000 tonnes of gold ended up on the market solely from inherited jewellery during that period despite only 3000 tonnes of gold being used yearly. 

Umicore is one of the largest precious metals recycling plants in the world. The transition to a circular economy for raw materials is imperative if we’re going to respond to the issue of environmental depletion. By choosing jewellery processed in Western Europe, you supposedly support good working conditions, but unfortunately, that is not the case everywhere in the world. 

What is The Environmental Impact of Mining Precious Metals?

Contemporary jewellery is pure, but gold mining today is a senseless capitalist absurdity.

Although 250,000 tonnes of gold are stored in the vaults of wealthy families, companies and banks worldwide, gold is still being extracted from mines. Nowadays, mining adds little to the cultural identity of jewellery as a gift or status symbol. Mining is entirely redundant and simply a capitalist absurdity. 

Large-scale gold mining in massive open-air mines is one of the most polluting activities in the world. Aside from jewellery, gold is also used in electronic devices such as mobile phones and laptops. How exactly are the raw metals mined? Gold and silver are found deep in the earth in ores. Forests and unique landscapes are often destroyed to make way for these giant pits to reach the ores. Sometimes, if the ore is exposed enough, rainwater can wash away the gold, making it very easy to mine as it collects in small rivers. Most gold and silver, though, need to be chemically dissolved from the ores. The highly toxic substance cyanide is often used for this process. On average, 20 tons of toxic mining waste are produced by traditional mining to extract enough gold for one wedding ring! The chemical treatment also removes toxic metals such as lead and mercury. After the gold has been extracted from the solution, the cyanide and poisonous metals remain. Sulphuric acid is used instead of cyanide to extract copper or nickel. Waste storage spaces are often nonexistent or poorly insulated, meaning most mining waste ends up in rivers and lakes, with dramatic consequences… These highly toxic chemicals and metals then wind up in drinking water and eventually in food via crops. Just one single grain of rice containing toxic substances is lethal to humans. 

In addition to the chemical waste produced by extracting gold and silver, this process also requires large quantities of fresh water. This heavy consumption generally causes drought and scarcity in surrounding areas. The mines get the water they need at the expense of drinking water for the local populations and irrigation for the farmlands. In addition, vast quantities of forests are also destroyed during mining, eradicating the unique biodiversity they contain. 

These gold and silver mines have an enormous impact on the environment.

What Is the Impact of Gold and Silver Mines on Local Communities? 

Local populations are often forced to move so mines can be built. Far too often, local farmers’ land is claimed without compensation. Unsurprisingly, these mines disrupt entire communities when they’re made. But also when they’re finished. Once all the metal has been extracted, the mine is abandoned, and local populations are left without work, money, clean water, or fertile farmland. 

How To Avoid Supporting Inhumane Working Conditions in the Mines 

The mining industry disrupts local populations and employs locals for meagre wages in dangerous conditions. The NGO WISE Uranium Project has reported on all mining accidents since 1960. A glance at their list shows how these often devastating accidents rarely make it into mainstream news.

Fairtrade and Fairmined

Many smaller mines now obtain certificates to guarantee better working conditions and reduce environmental impact. Small mines directly provide the largest supply of gold and silver worldwide. The Fairtrade Gold and Silver certificate ensures fewer miners live in poverty and provides a minimum wage bonus. Fairmined Gold and Silver evaluates four criteria: social development, economic development, protection of the environment and safe working conditions. Fairmined also has a higher certificate level for mines that don’t use chemicals: Fairmined ​‘ecological’ gold. 

The Impact of Certificates

Several studies have found that the impact of certificates such as Fairtrade or Fairmined depends on monitoring legislation and regulations and the country’s governance. In countries where legislation is not enforced, certificates have a low impact on working conditions and the environment. This is also the case for most kinds of certificates (not just for gold and silver), such as for coffee and banana plantations: they only work when adequately monitored and complied with. 

An additional issue is that smaller mines are sometimes awarded the certification despite failing to fulfil all the criteria. Because they are only sometimes directly in line with the guidelines, Fairmined has made an intermediate certificate to motivate them to keep improving their practices. However, this does mean that when you buy jewellery with the Fairmined certificate, you can not be 100% sure it meets all the criteria. 

It’s essential to remember that large NGOs operate like large companies, i.e., they have agendas and interests. So even the non-profit organisation in charge of the certificates will depend on good marketing and visibility to keep up their operations. Always stay critical and ask your jeweller questions. 

In our guide to ethical and fair trade jewellery, we discuss the effects of gold and silver mining on the environment, local populations and the terrible working conditions. We’ve covered basic concepts to help you choose better jewellery from fair trade. Would you also like to find out how to recognise an honest diamond? Read our guide on how to avoid blood diamonds and interpret fair diamond certificates.