Gold Crashes Through Production Cost Levels

Gold Crashes Through Production Cost Levels

Published: Friday, 28 Jun 2013 | 2:19 AM ET

http://www.cnbc.com/id/100851209

According to industry experts, the total cost of production varies between $1,000 and $1,200 an ounce depending on the scale of a miner's operations.

gold falling below $1,200 an ounce is certainly at the level where miners, especially the smaller ones, will face profitability issues.

Gold prices should start to stabilize once there's a significant reduction in supply as miners cut back,

"This fall in the price of gold is not truly based on supply and demand - It's based on expectations of what the Federal Reserve is doing,"

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Gold Crashes Through Production Cost Levels

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Gold fell to its lowest level since 2010 - under $1,200 and analysts say miners will be "severely" impacted by the slump.

http://www.cnbc.com/id/100851209