This is an illegal mine in Madagascar. Its gold is banned from the world’s legitimate marketplace. Thousands of children work in these mines, in violation of international law. Yet Madagascar’s gold flowed easily to market. And the world’s gold authority helped cover it up.

In an industry riddled with abuse, the world’s banks and governments rely on one entity to keep gangsters, warlords and human rights violators from selling gold into the mainstream market.

That group, the London Bullion Market Association, is the self-described “global authority for precious metals.” With the power to blacklist companies, the L.B.M.A. is the closest thing the multi-trillion-dollar industry has to an international regulator.

Governments rely on the association’s stamp as a sign that gold has been mined without human rights abuses, environmental devastation, financial sanctions or criminality. In the most literal sense, the L.B.M.A. sets the gold standard.

But a New York Times investigation found that the association has repeatedly allowed gold into the market that has been mined by criminals, cartel members and children. Refiners lie with impunity about the origins of their gold. The rules are pocked with exceptions and vagaries, and the L.B.M.A. has repeatedly decided not to enforce them.

And in the case of Madagascar, the L.B.M.A. helped change and backdate key paperwork that certified gold as free from abuse.

As prices skyrocketed in recent years and evidence emerged that gold was financing armed groups in Sudan and polluters in the Amazon, the industry perpetuated the notion that it kept such dirty gold out of the mainstream marketplace.

The Times investigation shows that the divide between “clean” and “dirty” gold is an industry fiction. There is just gold. And as Wall Street, central banks and investors stockpile and trade the precious metal, they’re profiting off a supply that includes gold from illegal sources.

That matters now more than ever. Two decades ago, when gold sold at about $600 an ounce, it was not profitable to drive mining barges into the deepest parts of the Amazon or use bulldozers to tear up acres of Madagascar rice fields to find gold. The price this year crossed the $5,000 mark. That has made it profitable to mine in inefficient, destructive and politically destabilizing ways.

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See also:

• To Find Criminals and Child Exploitation in Gold Mines, We Just Had to Look • Layers of people certify that gold is free from rights abuses and criminality. Nobody makes them leave their desks. (New York Times)