As gold prices surge past $3,000 per troy ounce—a historic milestone driven by geopolitical turmoil, inflation fears, and a weakening U.S. dollar— the effects are being felt around the world and underscore the role that illicit finance and illegally extracted resources play in fueling conflicts.
In Colombia, criminal factions are locked in a violent battle over a hidden fortune. This treasure, a stockpile of gold once hoarded by the Revolutionary Armed Forces of Colombia (FARC) and now allegedly controlled by dissident commanders, is valued at 50 billion Colombian pesos (approximately $12 million USD). Originally invested in machinery and other assets, its soaring worth has transformed it into a powerful financial weapon, fueling guerrilla operations, arms procurement, and illicit activities.
The Golden Catalyst
Gold’s meteoric rise in price—up 30 percent in 2025 alone—has transformed dormant caches into liquid power. For Colombia’s fractured guerrilla networks, this appreciation is a game-changer. Military intelligence reports reveal that FARC dissident commander alias Calarcá now controls a significant stockpile of gold valued at 50 billion COP (or about $12 million USD). This reserve, initially partially invested in machinery and other assets, now fuels guerrilla operations and arms procurement. As veteran journalist Salud Hernández-Mora documented in her interviews, the gold reserve is seen as a “reserve for our army,” a statement echoed by negotiator Andrey Avendaño from Calarcá’s faction.
The soaring value of gold has not only intensified existing rivalries—it has also provided dissident groups with additional leverage. As the price of gold climbs, so too does the purchasing power of the war chest, enabling armed groups to upgrade their arsenals and broaden their operational scope. Former FARC leaders, including those now seated in Congress, are accused of hoarding these assets after the 2016 Havana Peace Agreement, a deal that many believe was manipulated to hide decades of illicit wealth. “They kept the gold for themselves, not for the rank-and-file fighters,” Avendaño asserted, highlighting the deep fissures that have since erupted between factions like Calarcá and rival commander Iván Mordisco.
Cross‑Border Financial Maneuvers
Gold isn’t just a tool for purchasing weapons—it also underwrites a sophisticated network of cross‑border investments. According to the Attorney General’s Office of Colombia, many of the FARC’s assets, accumulated over nearly five decades of conflict, were held abroad—up to 70 percent of their wealth, in fact. These illicit funds are channeled into lucrative ventures such as real estate, transportation, and hospitality, providing the guerrilla groups with a diversified financial base that spans continents.
Ex‑guerrilla leader Simón Trinidad is a prime example. Through a series of shell companies and fraudulent invoicing mechanisms, Trinidad transferred vast sums from Colombia to Ecuador, allegedly via enterprises like Inversiones Soluciones y Proyectos S.A. This strategy not only disguises the origins of the money but also creates a network of foreign assets that fortify the group’s international financial clout.
The illicit gold trade poses a direct threat to U.S. national security, as top officials have long warned. Now serving as Secretary of State, Marco Rubio has emphasized that illegal gold mining in Latin America is “far more lucrative than drug trafficking,” with billions of dollars’ worth of illicit gold—often mined in Venezuela and Colombia—entering U.S. consumer markets through ports like Miami. A 2023 GAO report found that Venezuelan gold is regularly laundered through shell companies and smuggled into international markets, including the U.S., via complex transnational routes.
In response, U.S. lawmakers have introduced bipartisan legislation—the U.S. Legal Gold and Mining Partnership Act—which mandates a comprehensive strategy led by the State Department to combat illegal gold mining, strengthen anti-money laundering frameworks, and promote supply chain transparency. These actions reflect a growing recognition in Washington that environmental crime is not just a regional crisis—it is a strategic challenge to U.S. security, financial integrity, and foreign policy interests.
$12 Million USD: A War Chest Unleashed
What exactly does $12 million USD buy in Colombia’s shadow economy? The answer lies in the dismal affordability of modern warfare—where even high-tech weaponry can be procured on the black market at astonishingly low prices. There is some circumstantial evidence suggesting that weapon prices are lower on the illegal market, though they typically come with added risks. AK-47 assault rifles, for example, are available for as little as $500 each, meaning that this war chest could theoretically arm 24,000 fighters. The same funds could also be diverted into low-cost drones or explosives, illustrating how the illicit gold reserve serves not only as a symbol of power but as a practical means to escalate violence on the ground.
The Vicious Cycle: Leverage and Violence
At its core, Colombia’s conflict is fueled by a grim paradox. Gold, the quintessential safe haven asset prized for its stability, has been repurposed into a catalyst for chaos. The interplay between global gold demand and Colombia’s internal conflicts is striking. International investors, ranging from central banks to individual retail buyers, have driven gold’s price higher amid fears of dollar volatility and escalating trade tensions.
For Colombia’s guerrilla factions, however, these rising prices create a reinforcing cycle: the more valuable the gold becomes, the greater their funding—and the more extensive their capacity for violence. This cycle—whereby rising asset values beget greater military expenditures, which in turn fuel further instability—illustrates the profound challenge facing Colombia.
Conclusion: Gold’s Dark Glow
The global dynamics surrounding rising gold prices reveal how environmental crimes can fuel conflict. The $12 million reserve has already been mined, but soaring prices will continue to drive further illegal gold mining in rebel-controlled areas and beyond. Recent military operations highlight the scale of these illicit economies: the destruction of a major mining complex in Buenos Aires, Cauca, deprived FARC dissidents of an estimated $3.65 billion COP (approximately $900,000 USD) in monthly revenue. Authorities discovered and destroyed 21 submersible dredges and 69 motor pumps used for illegal gold extraction, infrastructure that was financing the illicit activities of the Jaime Martínez Front of the Estado Mayor Central (EMC) faction.
The global surge in gold prices not only drives illegal mining but also underscores the broader challenge of illicit finance fueling conflict. Unchecked financial channels often allow illicit activities to thrive, with natural resources like gold being exploited to finance conflict and destabilization.
Efforts to improve financial transparency, both domestically and internationally, are crucial to addressing these interconnected problems. In the U.S., Fully implementing the Corporate Transparency Act to tackle the use of anonymous shell companies, is a necessary step to close off domestic loopholes. At the international level, tools like the OECD Due Diligence Guidance for Responsible Mineral Supply Chains provide a framework for identifying and mitigating risk, while platforms such as the Egmont Group enable secure, real-time intelligence sharing between Financial Intelligence Units (FIUs) across borders.
By combining stronger enforcement at home with enhanced cross-border cooperation, countries like the U.S. can help dismantle the financial infrastructure enabling environmental crime and transnational violence. The urgency is clear: as long as conflict actors can profit from illegal gold mining, the cycle of violence will persist.