Gold production costs have increased gain. In fact, they are at an all time high. This means that for some mining companies, the cost to mine and produce gold is too high to make a profit based on the current price of gold. So, what should you do?
Gold production costs are arguably the most important number for gold investors. After all, to truly understand the value of a commodity, you need to how much it costs to produce. For wise commodity investors, it’s like a dream come true when the cost to produce a commodity becomes higher than the public price, because for a limited time, investors can buy the commodity at a low cost, before dwindling supply and growing demand eventually drive price growth. It’s essentially a rare case of retail prices falling below cost.