In Peru, the demand for gold has resulted in illegal and destructive mining that in turn, has increased deforestation in the Madre de Dios region.
According to Mongabay.com, an environmental science and conservation news site, the loss of forests in Peru is only the beginning. Mining has detrimental effects such as an increase of mercury which contaminates the air and soil.
In addition, according to the article, social problems like drug trafficking, indentured labor, and child prostitution, have arisen from the illegal gold trade.
But Peru is not the only country facing this issue. Three years ago, officials in Tibet planned to ban gold mining to protect the environment.
According to an article by the Associated Press, many parts of China are polluted and water supplies are contaminated because of illegal mining. In parts of Tibet, water is used as a source for China.