This is some background reading about the economics of cocaine which explains why individuals like Michael Camilleri (Tal-Bżar) can get rich really quick.
Illegal drugs have been inflation-proof during the past fifteen-years and more and their prices have remained somewhat the same in Europe. This also reflects the reality in Malta although prices in Malta tend to trend higher due to logistical issues.
This chart from the Financial Times is very popular and it is empirically correct.
Cocaine in Malta and Europe is sold at €50 per gram and higher to retail customers. However, one kilogram of cocaine can be bought for as cheap as $3000 from Colombia, $10,000 from Mexico and €15,000 from Spain. Whole sale prices in Europe start from €30,000 upwards and a kilo of cocaine sold to a retail seller can also fetch from €40,000 to €50,000. Cocaine trafficking has very high margins and if you choose the right options and combinations of trade you can make more than ten times your money. On large volumes, this trafficking trade can be very lucrative, even turning the trafficker a millionaire overnight.
A trafficking operation is often the work of various individuals who pool their money together for a shipment or share resources – only a small number of traffickers and the well established players have the capability to act by themselves. Eventually most of them get caught. Those who don’t have to make sure to spend their lives covering up their financial tracks.
Customs aren’t able to check every shipment and container, so trafficking cocaine is like a lottery or like a game of Russian Roulette. There is a probability you can make a lot of money at the risk of spending your life in prison.
Cars are often a very effective way to launder proceeds from drug sales – although laundering with cash is now more challenging because cash transactions above €10,000 are prohibited.
The sale of cocaine ha increased significantly in Malta during the past fifteen years and this increase is attributed to the increase in tourism and also economic growth. Impunity for drug traffickers like Lilu l-King (a Libyabn warlord) and Christian Borg, a previous cocaine trafficker with ties to the incumbent Prime Minister, has also emboldened other traffickers and created an atmosphere of permissibility and opportunity. However, the Police’s Drug Squad is one of the most equipped and dedicated branch of the Police Force.
Consuming cocaine is harmful and can lead to death while trafficking cocaine is also morally questionable and a very serious crime in Maltese law. It is also harmful to society when you consider all its effects.
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