Originally Posted by Arkie
Goldcorp costs are about average, and they're operating on razor thin margins in 2013.
The most expensive place to mine gold is in South Africa. They have mines that cost over $1500/oz. Obviously, they slowed down or stopped production. I googled an article written today that estimates that 60% of the South African industry is in loss-making territory at these prices.
Analysis: Price-cost pinch dulls last luster of South Africa's gold
The cheapest place to mine is in Nevada at $500/oz. But gold would be worth a lot more than cost if Nevada had the only mines in operation.
The average cost to mine gold you cite is quite silly. It includes the high cost mines in operation only because it's profitable to operate at high prices.
Like I said (and you have rebutted with nothing). The cost of gold is irrespective of it's cost to mine. The market price of gold is what determines which mining operations are viable, and which are not.