Bullion Vault
Gold miners’ profit margins came under fresh pressure Friday morning as the world-market price bounced from fresh 3-year lows beneath $1200 per ounce.
“The industry is not sustainable…where the gold price is at the moment,” said Nick Holland, CEO of Gold Fields — the 8th largest gold miner in 2012 — yesterday.
“We’re going to need at least $1500 an ounce to sustain this industry in any reasonable form.”
Updating its “buy gold at $1360” recommendation of two weeks ago, “We expect gold prices around present levels to be the cyclical lows for gold,” New York consultancy CPM Group said Thursday.
“[But] we are expecting another leg down on a short-term basis, most likely in the period from now through August.”