Social and Environmental Impacts of the Gold Commodity Chain
Gold’s unique qualities make it one of the most sought-after commodities in the world. Even in antiquity, gold was praised for its luster, shine, and beauty and was cast into jewelry and was widely regarded as a luxury item. Its inherent scarcity gave gold value and it became a symbol of status and wealth because those who could afford to frivolously spend on jewelry were well-off. In some societies, it even became a currency, shaped into round coins and emblazoned with faces of rulers. The rarity, usefulness, and desirability of gold made it a great long-term store of value, and it therefore went on to become a standard that backed other forms of currency. 5,000 years of various …show more content…
These miners endure these conditions to earn a measly $750 a month, a sharp contrast to the booming profits of the jewelry and gold industries. These subsistence miners collectively generate a black market valued at $2.5 billion and the Peruvian government struggles to regulate this industry.
These miners are also exposed to the dangers of mercury, which they come into direct contact with due to lack of safety equipment. Their bare skin encounters this toxic metal in waters where mercury levels are three time the safety limit. This danger extends beyond the mining operation as well as the river flows near villages and anyone who meets the water is at risk of mercury poisoning. Common symptoms of mercury poisoning include headaches, kidney problems, and permanent brain damage in …show more content…
For most countries in the developing world, gold is incredibly liquid and a widely accepted form of exchange. Furthermore, gold jewelry is used as savings in rural areas where access to a reliable banking system is nonexistent. Additionally, gold offers protections against a weak currency or high inflation levels, both apparent problems in the developing world. For these reasons, India is one of the predominant buyers of gold Jewelry, but is closely followed by China, United States, Dubai, and the Arab
Gold’s unique qualities make it one of the most sought-after commodities in the world. Even in antiquity, gold was praised for its luster, shine, and beauty and was cast into jewelry and was widely regarded as a luxury item. Its inherent scarcity gave gold value and it became a symbol of status and wealth because those who could afford to frivolously spend on jewelry were well-off. In some societies, it even became a currency, shaped into round coins and emblazoned with faces of rulers. The rarity, usefulness, and desirability of gold made it a great long-term store of value, and it therefore went on to become a standard that backed other forms of currency. 5,000 years of various …show more content…
These miners endure these conditions to earn a measly $750 a month, a sharp contrast to the booming profits of the jewelry and gold industries. These subsistence miners collectively generate a black market valued at $2.5 billion and the Peruvian government struggles to regulate this industry.
These miners are also exposed to the dangers of mercury, which they come into direct contact with due to lack of safety equipment. Their bare skin encounters this toxic metal in waters where mercury levels are three time the safety limit. This danger extends beyond the mining operation as well as the river flows near villages and anyone who meets the water is at risk of mercury poisoning. Common symptoms of mercury poisoning include headaches, kidney problems, and permanent brain damage in …show more content…
For most countries in the developing world, gold is incredibly liquid and a widely accepted form of exchange. Furthermore, gold jewelry is used as savings in rural areas where access to a reliable banking system is nonexistent. Additionally, gold offers protections against a weak currency or high inflation levels, both apparent problems in the developing world. For these reasons, India is one of the predominant buyers of gold Jewelry, but is closely followed by China, United States, Dubai, and the Arab