Gold Smuggling Rises Along Tibetan Border

16 kilograms of gold have been confiscated along the border of Tibet and Nepal in the past 3 weeks, a marked increase due to weakened security caused by flooding and landslides that have blocked many of the main roads in the area.

Four sherpas have been caught smuggling around 4 kilos of gold each, for which they were reportedly promised 30,000 Rs per kilogram ($4,875) upon safe delivery of the metals in Kathmandu. That equals  about 1/10th of the spot price for gold.

Recent smuggling attempts have all been on foot due to the recent flooding and landslides. Before the natural disasters disrupted road travel, most of the gold was smuggled using vehicles. A vehicle can easily transport a million dollars worth of concealed gold.

Efforts are currently underway to strengthen security efforts along the border to stem the illegal flow of the precious metal.

China and India account for 70% of global gold demand. India has seen an increase in recent weeks due to upcoming religious festivals and where gold is given as gifts and used for ceremonies. China recently reconfigured their gold reporting in order to obscure their overall demand.