Quote:
Originally Posted by slapass
Get a chart that goes back another 5 years and that picture totally changes. Gold has historically traded not much over the cost to mine it, so at about $800/ounce USD.
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Double that and you've got the cost.
"Total costs are sitting at $1,600/oz for the 13 biggest companies, which has been our universe for the last 13 years. Over the last two to three years, we have seen total costs rise an average of 15?17%. At a gold price of $1,600/oz, the industry does not produce a single Dollar of free cash flow. If we take a cost inflation of only 10%/year, we will need a gold price over $2,000/oz to maintain production. "
http://goldnews.bullionvault.com/gol...osts-031220132