Falling Gold Prices Can Spell Bad News for Industry

The Globe and Mail reported that rapidly falling gold prices will mean bad news for industry players already battling cost overruns, asset writedowns and project cancellations.

Analyst with Veritas Investment Research, Pawel Rajszel, told The Globe:

Costs are rising faster than gold and if gold isn’t rising, then producers are in trouble. It’s the story of the decade and nobody noticed because gold prices were going up. Now that gold prices are going down you see who’s swimming naked as the tide falls.

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