MARKETS SPECTATOR: Gold mine carnage

The chief of Mungana Goldmines says 20 per cent of Australian gold production could be shut down as prices fall.

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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