Gold trading in Kenya has become increasingly profitable over the last few years. The rise in global gold prices, linked to the flight of investors from a turbulent currencies market, has seen Western Kenya’s gold brokers rake in millions of shillings. Last Friday, the price of gold reached a record high of $1,320 an ounce, a 47 per cent rise from the beginning of 2009. However, the increase in gold prices has had little impact on the fortunes of thousands of small-scale miners in Kenya. The increasing profitability has led to a significant increase in the number of dealers in the supply chain. In the last 18 months, the number of dealers has grown from three to five.

Profitability of gold trading in Kenya

Kenya is not well known for its gold reserves. The country has yet to develop a large scale commercial gold mine, and much of the country is still unexplored. Meanwhile, neighboring Tanzania has major gold mines run by multinational mining companies. In the next few years, the Kenyan government wants to boost its gold production to increase its economy and support its citizens.

Gold mining and refining companies are likely to benefit from an increase in gold prices. Investing in these companies is a great way to profit from gold, and can be less risky than other investment methods. However, these investments are not for beginners. You must be familiar with gold prices before you invest.

There are numerous factors that affect the price of gold. Inflation, energy prices, and demand for gold all affect its price. If prices are too high, it might be a sign of overvaluation.

Smuggling of gold out of the Democratic Republic of the Congo

A UN team that monitors the arms trade has named three Kenyans involved in smuggling gold out of the Democratic Republic of the Congo. They say that a Nairobi-based network has been carrying out large-scale gold transactions, including counterfeit gold deals, and that it is a key source of financing for armed groups in the DRC. These groups have been responsible for the deaths of millions of civilians in recent years.

After finding the gold, the Americans called the Kenya Revenue Authority, where they learned of a gold refinery in the country. They said they had contacted Malongo but he did not return their calls. They reported the matter to the Kenyan police in January.

The DRC’s ministry of mines estimates that around 80% of the country’s mineral production is smuggled out. Following these revelations, Kenya and the DRC recently announced a joint investigation into this issue. Recently, the DRC banned the mining of gold in three eastern provinces. This has led to a crackdown on gold smuggling in those areas.

Legality of gold trading in Kenya

Kenya’s crackdown on a gold-cartel network will not damage Kenya-UAE relations, as long as Kenyatta can demonstrate that he is taking action against the scammers. Kenyatta will also benefit from the momentum he has gained from a previous gold-related racket investigation, although it’s important to note that no one has yet been convicted of a crime. The country still faces significant gaps in policing, border points, customs, and the financial system.

Kenya’s government has warned individuals and companies who engage in illegal gold trading that the consequences could be severe. As a result, the government is preparing for a nationwide crackdown on illegal mineral trading. The crackdown will target both unlicensed and licensed traders. The Ministry of Interior and Coordination of National Government will provide security personnel to enforce the law.

While gold is a valuable investment with low risk, it is a subject of concern to the government, who has banned the import of gold by unlicensed traders. The government has also purchased an x-ray spectrometer to test gold. However, some people do still fall victim to fraudsters posing as gold traders.