The gold price is the currency of fear
By GCRU Gold News on Wednesday, November 5 2014, 22:25 - Permalink
The latest decline in the price of gold is saddling higher-cost producers with losses on every ounce mined, and pushing others to the brink of also slipping into the red.
Gold fell to a four-year low of $1,160.50 an ounce last week, below production costs for five of 19 mining companies tracked by Bloomberg Intelligence, including Harmony Gold Mining Co., South Africa’s third-largest producer, and Primero Mining Corp. Three more producers are within $50.
Gold falling to $1,100 would mean some companies may have lines of credit withdrawn, may suspend high-cost mines, or they may have to hedge output, according to RBC’s Walker.
“New development projects will likely not get board approval,”