Golders are unlikely to reduce production

Gold today is one of the few products that are not threatened with a reduction in production, because the price of it exceeds the marginal costs of the mines. This is stated in the report by Macquarie Group Ltd.

Gold fell in price by 23 percent of the initial cost from the beginning of this year and updated a three -year minimum of $ 1180 for ounce on June 28. However, this is still almost 40 percent more than the marginal costs for its extraction and production.

“Despite the rapid drop in prices, gold remains not subject to growth in costs. While the growing prices of iron ore press the steel, the cost of the production of gold, copper and zinc remain unchanged,” the Macquarie Group Ltd report said in the report of the Macquarie Group.

Meanwhile, the first victims of falling gold prices are already beginning to declare losses. So Australian Newcrest Mining Ltd. (NCM) reported to write off the value of assets in the amount of $ 5.5 billion. More than 2 percent of gold manufacturers around the world become unprofitable at a price of gold below $ 1,200, the London analytical group of Cru Group assures, and when the price falls below $ 1,000 per ration, 13 percent of the mines will go bankrupt.

In September 2011, the cost of gold set the absolute world record in 1921.15 dollars for ounce.