Gold From North Korea is Making its Way Into U.S.

When the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed in 2010, a little-known provision of the bill stipulated that American companies would have to disclose to the SEC their supply chains of gold, tin, tantalum, and tungsten.

This was part of an effort to reduce or eliminate the procurement of metals from the conflict-stricken Democratic Republic of Congo. It's widely known that American companies, notably electronics manufacturers, have been sourcing some of their materials from the rebel-controlled mines in the D.R.C. for years.

But a surprising revelation from the SEC filings was that 67 companies disclosed they had been using gold that originated in North Korea. These companies included Hewlett-Packard, Ralph Lauren, IBM, Deere, and Williams-Sonoma. Many of these companies use suppliers that are based abroad, and have little direct control over their mineral sources. In a statement released by IBM, the company stated that it depends on its suppliers to "procure minerals from responsible sources" and adhere to American regulations.

North Korea produces around 12 tons of gold per year and is believed to hold around two thousand tons in reserve, valued at more than 8 billion dollars. One way the gold from North Korea could be entering the U.S. is via China.

China does not have the same trade sanctions against North Korea as the U.S. and investment advisor GoldCore estimated that the country imported at least 2 tons of gold from North Korea in 2012.

Stemming the flow of North Korean gold to the U.S. could prove to be difficult for a number of reasons. A large dollar amount of gold could be in a small quantity, which would be tough to track and gold that is processed in China would be indiscernable from North Korean gold.