Saturday, June 29, 2013

Miners Can’t Operate With Gold Below $1500, Gold Fields Says

Bullion must rise to $1,500 an ounce for the gold mining industry to be sustainable, according to Gold Fields Ltd. (GFI)’s Chief Executive Officer Nick Holland.

“The industry is not sustainable at $1,230 an ounce, which is where the gold price is at the moment,” Holland said today in a telephone interview. “We’re going to need at least $1,500 an ounce to sustain this industry in any reasonable form.”

Gold entered a bear market in April on signs the U.S. economy was improving and fell further this month as Federal Reserve Chairman Ben S. Bernanke signaled he may slow bond purchases should the U.S. recovery continue. The plunging price of bullion is squeezing producers who spent $195 billion on acquisitions in a decade-long price boom that peaked in 2011, when prices reached $1,900 an ounce.

Continue Reading at Bloomberg.com…
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