Loading ...One in 10 gold mines are now operating at a loss as bullion prices have dropped to the lowest level in five years, marking the worst period of depreciation since 1996, Wood Mackenzie said in a note to investors.
And while gold was moderately higher in early U.S. trading Thursday, on a short-covering, technical rebound, analysts agree the whole industry is on a bit of “a knife-edge.”
James Sutton, a portfolio manager at JPMorgan Chase & Co.’s $2 billion Natural Resources Fund, told Bloomberg Wednesday gold miners are making “very, very small” margins.
Really everybody in the industry needs higher prices. You’re going to see some companies run into trouble,”
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