Law enforcement officials and traders in the Philippines estimate that up to 90 percent of the gold mining done by small-scale miners in the country is sold on the black market and smuggled out of the country.
By law, gold that is mined in the Philippines must be sold to the Central Bank. However, in the second quarter of 2012, the amount of gold sold by small-scale miners dropped by 98 percent from the year before.
Gold Miners are selling their gold on the black market either directly to tourists, or to middlemen who smuggle the gold onto world markets such as Hong Kong.
Source: Rosemarie Francisco, “Special Report: Philippines’ black market is China’s golden connection,” Reuters, August 22, 2012.