The Gold Marketing Chain in Suriname - WWF, Abu Dhabi unveil ...

The most important suppliers of gold to jewelers are the gold buyers/exporters (Figure 7.3).
Jewelers like to buy gold in these places because they are trustworthy and offer good service.
Moreover, the gold is already burned so mercury and most other impurities have been
removed (Table 7.4). The buyers are also flexible and there is little or no bureaucratic hassle
involved. There is inconsistency among the sources in whether jewelers are legally allowed to
purchase gold from gold buyers. According to the consulted juridical expert, “natural persons”
are allowed to buy gold from licensed gold buyers. According to the law, however, the Central
Bank is the only institution that is authorized to sell unprocessed gold (See Chapter 6).
When gold is sold by gold miners and other entrepreneurs in the mining areas to buying houses
the gold is melted to remove impurities. The operators of this shop melt the gold in front of the
miners. The difference in weight before and after the melting is mainly attributed to mercury
that is evaporated. During this process residual mercury, which usually accounts for about 3 to
5 % of the weight is released (Surimerc 2008). After assaying locally, Suriname gold typically is
92 to 93 percent pure. The equipment and knowhow to purify gold up to 24 K (99.9999% Au) is
not present in Suriname.
The second and third most mentioned places to obtain gold are the pawnshop and small‐scale
gold miners. Buying from these sources is particularly attractive for the good price. In addition,
purchasing from these sources is flexible and not restricted by bureaucratic regulations.
Purchasing gold from gold buyers is not allowed by law, yet tolerated (gedoogd) and not
actively prosecuted. In fact, a staff member from the Currency Commission stated in an
interview that jewelers were allowed to buy from gold miners because “they need it for their
business” 84 . Drs. Shankar, the district commissioner of Nickerie, made a similar comment when
referring to the informal sale of gold by Guyanese miners to jewelers in Nickerie. “Obviously”,
he said, “professionals [goldsmiths and jewelers, ed.] cannot continue their work without gold”,
and hence the district government does not actively track and punish such activities 85 . These
statements contradict both the law (Chapter 6) and formal gold market procedures as
explained by Mr. Wolfram, a senior official at the Central Bank 86 .
Few goldsmiths regularly buy from gold miners. One goldsmith said he buys weekly from miners
and another respondent buys a few times a month. Yet most goldsmiths who purchase gold
from miners only do so just ‘a few times a year’ (n=6) or ‘seldom’ (n=3). For example, a
goldsmith may call a befriended miner when he needs gold to fabricate a specific order.
84 Ms. Nemelc, Currency Commission, 9 April 2010
85 Mr. Shankar, District Commissioner Nickerie, 31 March 2010
86 Mr. Wolfram, Central Bank of Suriname, 27 May 2010
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