If You Had

[TreasurePirate69]

The all in cost of most gold producers is now up $1050-1100 and rising,which means if prices fall much further and stay down,they will cut production which eventually raise prices.I only hope they don't starting hedging their future production again because that could help cap prices.

The "cost of production" isn't really a very good metric for determining a floor for the price of gold. This is because the cost of production goes up and down along with the price of gold. If the price of gold goes up, then so does the cost of production because miners are willing to go after ore that wasn't economically feasible to mine at lower prices. When the price of gold goes down, the miners don't want to lose money so they stop going after risky or more expensive ores. Basically, the cost of production always seems to balance out so that the miners aren't losing a ton of money. If the price of gold drops to $900, then miners will have no choice but to find ways to lower the cost of production accordingly or else go out of business.

 

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