Gold production: Too much of a good thing?
By GCRU Gold News on Tuesday, September 30 2014, 23:38 - Permalink
Russian gold producers may need to reduce their mining operations to prevent prices from falling further as the result of an increase in supply on the market.
In his interview with the Kommersant business newspaper, CEO of Polymetal Vitaly Nesis stated that if the market price for gold falls below $1,000 an ounce, some production operations will have to be closed. According to Mr. Nesis, economic incentive to launch new enterprises only exists only when the price of gold rises to $1,500-$1,600 an ounce. Therefore the recovery of the market will take place only after a worldwide reduction in the production of gold and silver, Mr. Nesis concludes.