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.

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