Rising Prices, Rising Informality
The international gold price has soared near US $4,000 per ounce—reaching an unprecedented high of US $4,398 last week—fueling both investor optimism and illegal mining expansion in Peru. Despite a slight correction, analysts project the metal could reach US $5,000 by 2026, driven by geopolitical uncertainty, central-bank demand, and a weakening dollar. In Peru, where over half of formal mining operations are gold-related, the surge has intensified informal extraction across Amazonian regions such as Madre de Dios, Puno, and La Libertad.
The Cost of Unregulated Expansion
Data from the Ministry of Energy and Mines show that while the formal sector remains a vital economic driver, illegal gold mining has grown exponentially. Reports indicate that complaints related to illicit extraction tripled between 2020 and 2024, reaching more than 2,500 cases. Analysts warn that without systemic reform, the profitability gap between legal and illegal operators will continue to erode the state’s authority and environmental governance—undermining Peru’s social licence to operate in mining.
Tracing Gold, Rebuilding Trust
Industry leaders such as Juan Carlos Ortiz (IIMP) and Roque Benavides (Buenaventura) have called for a national traceability system to verify the origin of gold and close loopholes that allow illegal ore to enter formal supply chains. The Peruvian Institute of Economics adds that enforcement alone will not suffice; formalization and territorial development must advance in parallel. As global prices climb, Peru faces a pivotal test: to ensure that the next gold boom strengthens the rule of law rather than deepens its informal frontier.