Australian gold industry facing a crisis

Gold prices keep on falling. High cost producers face a bleak future.

It was once said that an ounce of gold could get you a Savile Row suit. At 1118 AEST gold was $US1,190.11 an ounce. Now an ounce of gold, whose price is down about a third in 12 months, may not even get you some Savile Row underpants. The price of a bespoke suit from the famous London tailors is at least $5,900.

Pat Scott, managing director of Mungana Goldmines, says gold’s current price will result in a 20 per cent fall in Australian gold production. Mines will be closed because their costs are too high for companies to make a profit, Scott says.

{{content.question}}

{{ twilioFailed ? 'SMS Code Failed to Send…' : 'SMS Code Sent…' }}

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

We cannot send you a code via SMS to {{user.DayPhone}}

If you didn't receive SMS code please

SMS code cannot be sent due to: {{ twilioStatus }}

Please select one of the options below:

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa
Mastercard

The email address you entered is registered with InvestSMART.

Please login or select "Don't know password"

Please untick this box when using a public or shared device


Register as a new member

(using a different email)

Related Articles