Reuters reported recently that Wal-Mart "is introducing a line of gold and silver jewelry that can be traced from the mine to store shelves". Please see http://www.reuters.com/article/domesticNews/idUSN1435036120080715, for the full article. An interesting prospect, being able to know everyone who has touched the value chain, from the mine to the Mart. The article mentions that, in order "to create the Love, Earth jewelry line, Wal-Mart worked with mining company Rio Tinto Plc; Newmont Mining Corp, a global gold producer; and Aurafin, a Florida-based jewelry manufacturer." An admirable notion, and one no doubt geared to assuage the plethora of consumers who worry that their shiny ornamentations are the result of "slave labor".

However, the germane issue for security, anti-counterfeiting and supply chain integrity is, "How authentic is this supply chain"? What are the on-ramps for a would-be counterfeiter? Does Wal-Mart's identification of the partners in the supply chain actually serve to increase the authenticity of the end product?

As you may suspect from past postings on this blog, the answers are not cut and dry. Identifying the companies that are "certified" for this program lets would-be counterfeiters know who to target for bribes. On the other hand, it does reduce the number of "middlemen" and so reduces the number (though certainly not the width) of on-ramps. It will be interesting to see what protections Wal-Mart puts in place for this program. As with software, so with "physical ware". The bigger the target, the more snipers taking shots at it. And Wal-Mart is the biggest possible target, with more employees than any other three companies combined. Rio Tinto, Newmont and Aurafin--the weakest link in these companies (a disgruntled stockroom worker, an underappreciated janitor, whoever) or in Wal-Mart itself--can render this crown jewel a bauble. So, unless you have a Smeagol Gollum lurking in your neighborhood Wal-Mart, you're unlikely to be sure who all the Lords of your Ring really were.

-Steve